Lapsed Rights

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Lapsed Rights

Rights attached to a security that have expired. For example, a stock may have rights attached to it contingent upon future payment of some amount. If the amount is not paid, the rights lapse.
References in periodicals archive ?
2704(a) occurs because the lapsed right can no longer be reclaimed.
Thus, the lapsed right may be considered in valuing D's stock for estate tax purposes.
Thus, if an individual transfers an interest with a lapsing voting or liquidation right within three years of the individual's death, the right is considered to lapse at the individual's death, and the value of the lapsed right is included in the individual's gross estate.
They would impose a "deathbed" rule including in the transferor's gross estate the value of a lapsed right for transfers within three years of the transferor's death.
28) If the lapsed right may be restored upon the occurrence of a future event not within the control of the family, there is no lapse so long as the right could be restored.
As a result, the value of the lapsed right to liquidate and withdraw the value of both the general and the limited partnership units should be included in the gross estate under Sec.
Any lapsed rights from the issue will be offered to financial intermediaries during an intermediaries offer.
Shareholders who let the rights lapse still receive a payment from BT, which will pool the lapsed rights and sell them on the market after the rights expire.