Timing/Calculation of Distribtuions
Question #5: 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 prepares and sends 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 mailed 2017 tax letters to the beneficiaries and Schedule 12 creditors of the Liquidating Trusts at the end of December 2017.   The 2017 tax letters from the Liquidating Trusts are the FINAL tax letters for the Liquidating Trusts.

Please note: Tax reporting from the Estate Litigation Trust previously went to the Liquidating Trusts, which then passed it on to the beneficiaries and Schedule 12 creditors via the Liquidating Trusts’ tax letters.  Now that the Liquidating Trusts have terminated, tax reporting from the Estate Litigation Trust for 2018 (and beyond) will be made directly to the beneficiaries and Schedule 12 creditors of the Liquidating Trusts.  A beneficiary or creditor will only receive one tax letter per year for each interest that it holds—a 2017 tax letter will be issued by the applicable Liquidating Trust, and a tax letter for 2018 (and beyond) will be issued by the Estate Litigation Trust.