DEFINITION of 'Immediate Beneficiary'
A beneficiary designation most commonly used in charitable gift planning to describe which parties get an immediate benefit from a transaction. The most basic type of immediate beneficiary would be a charity that receives an outright gift from a donor. More generally, the term "immediate beneficiary" can also refer to any individual or organization that receives immediate benefits from a trust's assets.
BREAKING DOWN 'Immediate Beneficiary'
Charitable giving strategies have come a long way in recent decades from simply donating property now or at the time of your death. Many philanthropic individuals now use charitable trusts that name the charity as the immediate beneficiary of either the original property or the income from that property. At the grantor's death, the property then may permanently transfer to the charity or back to the individual's heirs.