Also known as: legal distributees · distributee
Written by attorneys · grounded in primary & secondary sources — see below
A person entitled by law to receive property distributions. The designation identifies those who receive by operation of the governing instrument or intestacy rules rather than by discretionary selection.
Leonard Lowe is named in the trust instrument as the sole recipient of all net income during his lifetime. Because Leonard receives trust income directly, he meets the definition of a distributee of trust income or principal. The trustee must therefore treat Leonard as a qualified beneficiary entitled to notice of trust administration.
Lucy Liu holds a remainder interest that would become possessory only if the current income beneficiary dies before the trust terminates. If the income beneficiary's interest ended without terminating the trust, Lucy would then become entitled to receive trust principal. She therefore qualifies as a distributee under the second clause of the qualified-beneficiary definition.
Select any source to read its text and confirm it supports the definition.
Levi Lowe is the sole remainder beneficiary who will receive the entire trust corpus when the trust terminates according to its terms. On the date the trust ends, Levi will be entitled to distribution of all remaining principal. He therefore satisfies the third clause of the qualified-beneficiary definition.
Laura Lewis seeks to inherit from her deceased father under state intestacy rules after the will is set aside. The court must decide whether she is a legal distributee entitled to take the estate property by operation of law. Evidence of the father's open acknowledgment of paternity determines whether Laura receives the entire estate.
A legal distributee is a person the law itself designates to receive property under a will or intestacy statute. A beneficiary may be anyone named or selected by the testator or settlor. The legal distributee category therefore supplies a default rule when the instrument is silent or invalid.
Supporting sources
Yes. The Uniform Trust Code defines a qualified beneficiary to include any distributee or permissible distributee of trust income or principal. A person who would take under the will if the trust terminated is therefore treated as a qualified beneficiary entitled to notice and information.
The probate court determines priority under the governing will or intestacy statute. Each claimant must prove status as a legal distributee by showing either a valid testamentary gift or satisfaction of the statutory heir requirements. The court then orders distribution according to those proved entitlements.
Supporting sources
…64 Misc. 2d 758, 762-763, 315 N. Y. S. 2d 890, 895 (Surr. Ct. 1970), the court ruled that appellant was properly excluded as a distributee of Lalli’s estate and therefore lacked status to petition for a compulsory accounting. On direct appeal the New York Court of Appeals affirmed. In re Lalli , 38 N. Y. 2d 77, 340 N. E. 2d…