ULTIMATE DISTRIBUTION Clause Samples
The Ultimate Distribution clause defines how remaining assets or funds are to be allocated among parties after all obligations, debts, and expenses have been settled, typically at the conclusion of a business relationship, trust, or estate. In practice, this clause specifies the order and proportions in which beneficiaries, shareholders, or partners receive any residual value, often referencing a predetermined hierarchy or formula. Its core function is to ensure a clear, fair, and legally enforceable process for final asset distribution, thereby preventing disputes and confusion among stakeholders.
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ULTIMATE DISTRIBUTION. If, at the death of the last survivor of the Grantor, the Current Beneficiary and the last surviving descendant of the Current Beneficiary's father, any portion of any trust created hereunder, except a trust created pursuant to the holdback provisions hereof relating to beneficiaries under twenty-one (21) years of age, remains undistributed under the foregoing provisions hereof or pursuant to the exercise of a power of appointment created hereunder, then such trust shall be distributed by the Trustee to those persons who would then be the Grantor's heirs-at- law. For the purposes hereof, the term "heirs-at-law" shall mean those persons who would then be the heirs-at-law as determined by the then existing laws of descent and distribution of the State of Illinois as if the Grantor had died intestate at such time.