Timing/Calculation of Distributions
Question #5: UPDATED - What is a ‘Grantor Letter’, when will I receive it, and what does it mean?
Following the completion of each annual tax year, the Trustee will prepare and send to each beneficiary a “grantor letter” that will give the information needed to prepare their tax returns.  The “grantor letter” reports your annual share of income and/or loss as a beneficiary of the applicable Liquidating Trust, which will be used to adjust your basis in your beneficiary interest.  This information also is  reported to the Internal Revenue Service. Be sure to give the grantor letter to your tax advisor/preparer to include with your tax returns.The Trustee’s ability to prepare grantor letters is dependent on receiving information from parties that are outside the Trustee’s control.  In the past, this has required the Trustee to take an extension for the DBSI Liquidating Trust tax filings.   The Trustee will advise beneficiaries of any tax filing extensions taken for either Trust—if the Trustee takes an extension for a Trust in which you are a beneficiary, then you will not receive your grantor letter before applicable federal, state or local tax deadlines and you may need to take an extension for your personal tax filing.