trusteebeneficiary

A trust beneficiary is an individual or entity designated to receive assets or benefits from a trust. This designation is established by the trust creator, known as the grantor or settlor, through a legal document called a trust agreement. The trustee is responsible for managing the trust assets according to the terms outlined in the trust agreement and distributing them to the beneficiary.

Beneficiaries can be named explicitly in the trust document, or they can be a class of individuals, such as "my children" or "my grandchildren." The specific rights and entitlements of a beneficiary are determined by the trust's terms. These can include receiving income generated by the trust assets, direct distributions of the principal, or the right to benefit from the trust in other ways, such as having their education or medical expenses paid.

There are different types of beneficiaries. A current beneficiary is entitled to receive distributions during the term of the trust. A remainder beneficiary is entitled to receive the remaining trust assets after a specific event occurs, such as the death of a life income beneficiary or the trust's termination date. The trustee has a fiduciary duty to act in the best interests of the beneficiaries, ensuring the trust is administered fairly and in accordance with the grantor's intentions. Beneficiaries may have legal recourse if they believe the trustee is not fulfilling their obligations.