Distribution In Kind


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."


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.

  1. Manufactured Payment

    A payment made to pass through dividend and interest payments ...
  2. In Specie

  3. Stock Dividend

  4. Payment-In-Kind - PIK

    1. The use of a good or service as payment instead of cash. ...
  5. Wealth Management

  6. See-Through Trust

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