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The regulations set forth four examples, two of which satisfy this incidental test and two which fail the test.We have answered some of the most common concerns when it comes to choosing the right site.

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The tax regulations define a liquidating trust as one created for the primary purpose of "liquidating and distributing its assets" (Treas.This is true regardless of whether the business purpose powers are necessary for a particular trust and regardless of whether the trustee actually exercises those powers.