Distributee is a term used commonly in estate planning but rarely used outside of estate planning. Every state includes a definition section to their laws to clearly convey the intent of the legislature. In New Jersey, a “distributee” is defined as follows:
“Distributee means any person who has received property of a decedent from his personal representative other than as a creditor or purchaser. A trustee is a distributee only to the extent of a distributed asset or increment thereto remaining in his hands. A beneficiary of a trust to whom the trustee has distributed property received from a personal representative is a distributee of the personal representative.”
In “real” English, that means that a person who receives property from the personal representative is a distributee. A trustee who holds and manages the assets which are distributed to the trust is a distribute in a representative capacity for the assets received from the estate and held by the trust. When the trustee distributes the assets to the beneficiary of the trust, the beneficiary is considered the distribute of the estate.
Getting Legal Help
Experienced New Jersey Estate Planning Attorney Elga Goodman can help you understand all your options for asset preservation and making the most of your estate assets to plan for the future and provide for your loved ones. Call us today at 973-841-5111 to learn more.