DEFINITION of 'Beneficiary Of Trust'
A beneficiary of trust is a person for whom a trust was created, and who receives the benefits of that trust. In many instances a trust is established to prevent the exhaustion of an estate. A trust for the benefit of a child, for example, may include specifications that would guarantee the parent's estate will not be carelessly diminished and that funds will be available for the benefit of the child.
BREAKING DOWN 'Beneficiary Of Trust'
There are two basic categories of a beneficiary of trust. The first form is where the beneficiary is entitled to take ownership and control of the trust and has the right to the income and capital.The second form is where the trustee is given additional duties and powers assigned in the trust deed.