For companies with certain types of illiquid but valuable intellectual property, the liquidating trust’s simplicity and lower cost can make it superior to other alternatives.For example, for a small biotech with drug development programs out licensed to third parties, the liquidating trust can be a cost effective way to collect milestones and royalties for a period of time while open issues are resolved and a transaction can be closed to monetize the licensor interest.Some professionals offer clean-out service and are also appraisers. Estate sales are usually conducted for a percentage of the gross proceeds of the sale.Thirty-five percent is the national average, but you should always inquire about what is included in that commission.A good estate sale professional answers your questions, including whether an estate sale is the best option for you, Julie Hall says.
• “Liquidation” into trust can end officers’ deferral period for severance payments under IRC 409A, depending on specific company circumstances. • As the winding up process progresses, the trust is readily administered on an as needed basis, versus retaining a corporate officer trying to move on with his/her life.
Fees vary depending on the auction companies, and can range anywhere from 10 percent for high-end items to 30 percent.