Also known as: permissible distributees · permitted distributee
Written by attorneys · grounded in primary & secondary sources — see below
A beneficiary who is currently eligible to receive distributions of trust income or principal, whether mandatory or discretionary.
Patricia Patel creates an irrevocable trust naming Pedro Pacheco as trustee. The terms authorize Pedro to distribute income or principal in his discretion to Patricia's nephew Paul Peterson. Paul is a permissible distributee because the trustee may currently choose to make distributions to him.
Darlene funds a trust directing income to her sister Paige Porter for life with remainder to Paige's daughter Pilar Pena. Pilar is a permissible distributee because the trust terms make her currently eligible to receive discretionary principal distributions even while Paige's life interest continues.
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Portia Price creates a trust for her son Paul Peterson during his life with the corpus passing to Pioneer Energy upon termination. Pioneer Energy is a permissible distributee because the trust terms make it currently eligible to receive the corpus if the trustee elects to terminate the trust today.
A permissible distributee is any current recipient or potential recipient of trust distributions. Qualified beneficiary status includes permissible distributees plus those who would become permissible distributees if current interests ended or if the trust terminated.
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Yes. The definition covers beneficiaries eligible for distributions whether the trustee's authority is mandatory or discretionary, so long as the trustee may currently choose to distribute to them.
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A trustee must send annual reports and termination reports to distributees or permissible distributees of trust income or principal, as well as to other qualified beneficiaries who request them.
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Yes. A defined class such as junior analysts whom the trustee finds promising can qualify as permissible distributees if the trust instrument authorizes distributions to members of that class.
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