Distribution In Kind
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Definition of 'Distribution In Kind'A payment made in the form of securities or other property, rather than in cash. A distribution in kind may be made in several different situations, including a stock dividend, inheritance or taking securities out of a tax-deferred account. It can also refer to the transferal of an asset to a beneficiary over the option of liquidating the position and transferring the cash.Also referred to as a "distribution in specie." |
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Investopedia explains 'Distribution In Kind'The most common form of a distribution in kind occurs when a company pays a dividend in stock, rather than in cash. A distribution in kind may also be employed for tax reasons. In certain situations, receiving appreciated property directly can result in a lower tax bill versus selling the property and receiving the value of the property in cash. |
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