Beneficiary Of Trust

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Qualified Personal Residence Trust ...

    A specific type of trust that allows its creator to remove a ...
  2. Secondary Beneficiary

    A person or entity that inherits assets under a will, trust or ...
  3. Primary Beneficiary

    A beneficiary in a will, trust or insurance policy that is first ...
  4. Estate

    All of the valuable things an individual owns, such as real estate, ...
  5. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
  6. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
Related Articles
  1. Encouraging Good Habits With An Incentive ...
    Insurance

    Encouraging Good Habits With An Incentive ...

  2. Establishing A Revocable Living Trust
    Retirement

    Establishing A Revocable Living Trust

  3. An Estate Planning Must: Update Your ...
    Options & Futures

    An Estate Planning Must: Update Your ...

  4. Mistakes In Designating A Retirement ...
    Retirement

    Mistakes In Designating A Retirement ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center