HOT ISSUES
Question #4: Is my “beneficial interest” the amount of money that will be distributed to me from the Liquidating Trust?
No, it is not a guaranteed amount, but it is indicative of the size of the probable distribution. Your “beneficial interest” is the percentage your claim represents of the estimated current value of the assets transferred into the respective Liquidating Trust. It is your share of the assets in that trust on the first day that trust existed. Over the next several years, the trust will sell assets, earn income and pay expenses and the income is dependent on several complex factors that cannot be predicted by the Trustee. Ultimately, you will receive your percentage of the proceeds from the orderly liquidation process and this amount will likely be different from the valuation at the beginning of the life of the trust. We hope but can’t guarantee that it will be better than this valuation which tax law requires be current estimated value.