Distributee

A distributee is an individual or entity that receives something distributed, especially assets, property, or funds, from a source such as an estate, trust, or other distributing entity. The term emphasizes the receiver's role in the distribution process. A distributee is the intended recipient, legally entitled to receive the allocated assets. The specific nature of the distribution varies depending on the context but often involves inheritance, dividends, or other forms of financial disbursement. The rights and responsibilities of a distributee are typically defined by legal documents or the terms of the distribution. The concept is fundamental to property law, finance and estate planning, and is an important term for the distribution of assets following the death of the assets' owner.

Distributee meaning with examples

• Upon the testator's death, his children were named the distributees of his considerable estate, receiving shares according to the will's stipulations. This ensured a fair distribution of assets among the intended beneficiaries. Each distributee was responsible for following certain requirements after receiving their assets.
• The trust agreement designated specific charities as distributees of the trust's annual income, allowing them to fund various projects. The distributees were informed of their grants and submitted yearly updates to the board on how the assets were used. They were responsible for keeping records.
• After the company declared bankruptcy, shareholders were notified that they were the ultimate distributees of the remaining assets, after all creditors were paid. The distribution process prioritized claims, with the distributees receiving a percentage of their initial investments depending on the amount remaining.
• The life insurance policy listed his wife as the sole distributee of the death benefit, providing her with financial security after his passing. The paperwork was submitted and the distributee was informed of when to expect the asset.
• During the liquidation of the business, creditors became the primary distributees of the liquidated assets. This process ensured that funds would go back to cover existing debt. The distributees were notified to receive the liquidated assets.