Trust Beneficiary: A trust beneficiary is an individual or entity that is designated to receive benefits, income, or assets from a trust as stipulated in the trust agreement.
In a trust arrangement, the trustor (or grantor) creates a trust and transfers assets to it. The trustee manages these assets on behalf of the beneficiaries, who have a legal right to the benefits from the trust. Beneficiaries can be specified in various ways, such as specific individuals, family members, or even charities, and may receive distributions at different times or under particular conditions set forth in the trust document.
For example, if a parent establishes a trust for their children, each child would be a trust beneficiary entitled to receive distributions from the trust according to the terms outlined by the parent.
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