Legal Definitions - distributive clause

A distributive clause is a specific section within a legal document, such as a will or a trust, that clearly outlines how assets, income, or specific gifts are to be divided and given to beneficiaries. It details who receives what, under what conditions, and often when these distributions should occur.

Here are some examples:

• Example 1: A Will Specifying Asset Distribution

  Imagine a will that states: "My vintage car collection shall be given to my nephew, David Chen. The proceeds from the sale of my primary residence shall be divided equally between my two daughters, Sarah and Emily. All remaining cash assets shall be placed into an educational fund for my grandchildren."

  This illustrates a distributive clause because it precisely dictates which specific assets (car collection, house sale proceeds, remaining cash) go to which named beneficiaries (David, Sarah, Emily, grandchildren) and for what purpose (educational fund).

• Example 2: A Trust Distributing Income Over Time

  Consider a trust established for a child that includes the provision: "The trustee shall distribute 50% of the trust's annual income to my son, Michael, on his birthday each year, starting from his 18th birthday until he reaches the age of 25. Upon reaching 25, the entire remaining principal of the trust shall be distributed to him outright."

  This is a distributive clause because it sets out a clear plan for how and when the trust's income and principal are to be distributed to the beneficiary, Michael, based on specific age milestones.

• Example 3: A Will Dividing an Estate by Percentages

  A will might contain the clause: "After all debts, taxes, and specific bequests have been satisfied, the remainder of my estate shall be distributed as follows: 60% to my spouse, Maria Rodriguez; 20% to my sister, Elena Perez; and 20% to the 'Local Animal Shelter' charity."

  This demonstrates a distributive clause by defining the exact proportions (percentages) in which the residual assets of the estate are to be divided among multiple beneficiaries, including both individuals and an organization.