Legal Definitions - distribution in kind

Distribution in kind refers to the transfer of property in its original state. This means that instead of receiving the proceeds from the sale of a property, the property itself is transferred to the recipient.

For example, if a parent passes away and leaves their estate to their children, they may choose to distribute the assets in kind. This could mean that instead of selling the family home and dividing the proceeds, the children would each receive a portion of the property itself.

Another example of distribution in kind could be a company distributing shares of stock to its shareholders instead of paying out dividends in cash.

These examples illustrate how distribution in kind involves the transfer of property in its original state, rather than converting it into cash or other assets.