Legal Definitions - Trust Beneficiary

Definition: The trust beneficiary is the person or entity that benefits from the assets held in a trust. The trustee holds the title to the trust property for the benefit of the beneficiary.

Example: John creates a trust and names his daughter, Sarah, as the beneficiary. The trust holds John's assets, such as his house and investments. Sarah will receive the benefits of these assets, such as rental income from the house and dividends from the investments, as determined by the terms of the trust.

Explanation: In this example, Sarah is the trust beneficiary because she is the person who benefits from the assets held in the trust. The trustee, who is responsible for managing the trust assets, holds the title to the assets for Sarah's benefit. The terms of the trust dictate how and when Sarah will receive the benefits of the assets.