Beneficiary

In one sentence

A person or organization entitled to receive money or property from a trust, will, or insurance policy.

Plain English

A beneficiary is the person who benefits from an estate plan or financial arrangement. In a trust, beneficiaries receive distributions of income or principal according to the terms set by the person who created the trust. Beneficiaries can be family members, friends, charities, or any entity the grantor chooses. They have legal rights to enforce the trust and ensure the trustee follows its terms.

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Example

Tom creates a trust naming his three children as beneficiaries. The trust document states that each child receives $5,000 per year until age 30, then receives their share of the remaining principal. Each child is a beneficiary with the right to receive these payments.

Used in a sentence

“The primary beneficiary of the life insurance policy receives the death benefit if the policyholder dies.”

Related terms

Trustee

The person or institution legally responsible for managing assets held in a trust.

Grantor

The person who creates a trust and transfers property into it.

Trust Instrument

The legal document that creates a trust and outlines how assets will be managed and distributed.

Irrevocable Trust

A trust that cannot be changed, modified, or terminated once created without beneficiary consent.

Spendthrift Trust

A trust that restricts a beneficiary's ability to spend or transfer their inheritance to creditors.

Probate

The court process of validating a will and distributing a deceased person's estate.

Intestate Succession

The legal process of distributing a deceased person's property when they leave no valid will.

Elective Share

A surviving spouse's right to claim a portion of the deceased spouse's estate despite the will.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.