Beneficiary typically refers to someone who is eligible to receive distributions from a trust, a will or a life insurance policy. Beneficiaries are either named specifically in these documents or have met the stipulations that make them eligible for whatever distribution is specified.
A beneficiary is a person who is the designated receiver of either property or other funds. This can be determined by an insurance policy, a trust, or any type of will. However, the position of beneficiary does come with the requirement to understand certain legal roles and responsibilities.
The beneficiary is the person who inherits the asset from the Trustees, but this depends on what type of trust is involved. Some trusts withhold the asset from the beneficiaries and the trustees will have control over if, when and how they choose to pay out the trust such as when a certain age is reached by the beneficiary.
If you have children who are beneficiaries under your trust or by intestate distribution, a conservator for those minors will have to be appointed by the Court in order to collect and manage the minors’ money until they reach the age of 18.
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