Definition - What does Trust Beneficiary mean?
A trust beneficiary is a party who receives the benefits of a trust. These benefits can be spread out over a length of time, or they can be given all at once. People often set up trusts for their children, grandchildren, or other relatives. In the context of the law, trustees are legally obligated to give the assets to the trust beneficiaries as per the terms of the trust.
Justipedia explains Trust Beneficiary
Many different assets can be put into a trust; for example: cash, land, real estate, etc. The purpose of putting these assets into a trust is to make sure that they are managed properly. For example, a person who sets up a trust for his five-year-old daughter would not want to give the assets to his daughter while she is still five. This is because a five-year-old usually does not possess the required intelligence to properly manage assets. This is why trust beneficiaries are named in trusts.