A trust is a legal entity that holds assets for some purpose. The beneficiary of the trust essentially represents this purpose. It is the person or organization that benefits from the trust.
Your eccentric great uncle loved his cat, so he put all his assets into a trust, which will maintain little Snowball in feline luxury after Uncle Roland passes into the great beyond. Now, that cat lives happily on a twelve-acre estate in Westchester County, waited on by four servants. That fuzzball is the beneficiary of the trust.
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Finance: What is a Beneficiary?25 Views
Finance a la shmoop.. what is a beneficiary? well in Latin, bene is
good so this is like a good place to catch fish...well close not [Old man fishing in the ocean]
really but being a beneficiary is good it means you get stuff like if you are
the beneficiary of weird uncle Al's will then you get his odd collection of hair
balls shaped like US presidents and thirty two thousand two hundred sixty [Uncle Al's will appears]
$9.32... in essence then you are the beneficiary of his will you are the one
set up to benefit by the death of someone who wanted to favor you with
their assets when they had you know passed on to the great beyond where hair [Uncle Al with white wings in heaven]
balls will fall....
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