Legal Definitions - distributee

A distributee is an individual or entity legally entitled to receive a share of assets from an estate or a trust. This term is often used interchangeably with "beneficiary" or "heir." It applies whether someone inherits property according to a valid will, through state laws when there is no will (known as dying "intestate"), or as a designated recipient of funds or property from a trust.

Here are some examples illustrating the concept of a distributee:

• Example 1: Inheritance Without a Will
  Mr. Henderson, a widower, passes away without having created a will. According to the laws of his state, his only child, Sarah, is legally entitled to inherit all of his property and financial assets. In this scenario, Sarah is a distributee of Mr. Henderson's estate, as she is designated by state law to receive his assets.

• Example 2: Inheritance Through a Will
  Mrs. Albright's will clearly states that her extensive collection of rare books should be given to her nephew, Michael, and that her primary residence should be left to her daughter, Emily. Both Michael and Emily are named recipients of specific assets from Mrs. Albright's estate. Here, Michael and Emily are distributees, as they are entitled to receive particular portions of the estate as directed by the will.

• Example 3: Trust Distributions
  A family establishes a trust fund designed to provide financial support for their grandchildren's college education. The trust document specifies that when each grandchild enrolls in an accredited university, they will receive an annual payment to cover tuition and living expenses. As each grandchild meets the criteria and begins receiving funds, they become a recipient of the trust's assets. In this context, each grandchild receiving payments is a distributee of the trust.