A distributive share refers to the portion of an inheritance that an individual receives when an estate is divided in accordance with legal regulations. It can be likened to receiving a slice of a pie when it is divided into portions. Each person is entitled to their own slice, or distributive share, of the pie.
A distributive share refers to the portion of an estate that is legally distributed to an heir or beneficiary. For instance, when an individual passes away and leaves behind assets, these assets are divided among their heirs or beneficiaries based on their will or state law. If the estate is valued at $1 million and there are four heirs, each heir would be entitled to a distributive share of $250,000. Essentially, the distributive share represents the specific amount of the estate that each heir or beneficiary is eligible to receive. In the given example, all heirs receive an equal share of the estate, which is distributed in accordance with the deceased’s wishes or state law. The distributive share can vary depending on the estate’s size and the number of heirs or beneficiaries involved.
A distributive share refers to the portion of profits or losses that a partner or shareholder is entitled to receive from a business entity, such as a partnership or corporation.
The distributive share is typically determined based on the ownership interest or percentage of ownership that a partner or shareholder holds in the business entity.
Yes, a distributive share can be different from the ownership interest if the partners or shareholders have agreed to allocate profits or losses in a different manner through a partnership agreement or shareholder agreement.
Yes, a distributive share is generally taxable as income to the partner or shareholder receiving it. The individual will need to report the distributive share on their personal tax return.
In general, a distributive share should not be withheld or delayed without a valid reason. Partners or shareholders have a right to receive their distributive share in a timely manner, as agreed upon in the partnership or shareholder agreement.
In most cases, a partner or shareholder cannot transfer their distributive share to someone else without the consent of the other partners or shareholders. The transfer of a distributive share may require approval and compliance with the partnership or shareholder agreement.
If a partner or shareholder does not receive their distributive share as agreed upon, they may have legal remedies available to them. They can potentially file a lawsuit against the business entity or the other partners or shareholders for breach of contract or other legal claims.
Yes, a distributive share can be modified or adjusted if all the partners or shareholders agree to the changes. This may require an amendment to the partnership or shareholder agreement.
Generally, a partner or shareholder is entitled to their distributive share up until the date they officially leave the business entity. However, this may vary depending on the terms outlined in the partnership or shareholder agreement.
In certain circumstances, a partner or shareholder’s distributive share may be subject to creditor claims if they have personal debts or obligations. However, this will depend on the specific laws and regulations governing creditor rights in the jurisdiction.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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