Contexts of Asset Distribution:
Estate Planning:
When someone passes away, their assets are distributed to their heirs according to their will or, if there is no will, according to state intestacy laws.
Business Liquidation:
When a company ceases operations, its assets are sold, and the proceeds are distributed to creditors and shareholders according to established priorities.
Trust Management:
Assets held in a trust are distributed to beneficiaries according to the terms of the trust document.
Bankruptcy:
In bankruptcy, assets are distributed to creditors according to a specific order of priority established by law.