Beneficiary
A beneficiary is a person or entity that is legally entitled to receive money or other benefits from a trust, will, insurance policy, retirement plan, annuity, or other contract. The beneficiary is usually designated by the person who creates the trust or contract, and the beneficiary may be an individual, a group of people, or a charity. The beneficiary is entitled to receive the benefits upon the death of the person who created the trust or contract, or upon the occurrence of a specified event.
History of the Term
The term “beneficiary” has been used in legal documents since the Middle Ages. In the United States, the term was first used in the 18th century in wills and other documents. The term has since been used in a variety of legal documents, including trusts, insurance policies, and retirement plans. In the United States, the term is defined by the Internal Revenue Service (IRS) as “a person or entity designated to receive money or other benefits from a trust, will, insurance policy, retirement plan, annuity, or other contract.”
Comparison Table
| Beneficiary | Trustee |
|---|---|
| Receives money or other benefits | Manages the trust or contract |
| Designated by the person who creates the trust or contract | Appointed by the court or other authority |
| Entitled to receive benefits upon the death of the person who created the trust or contract | Responsible for managing the trust or contract |
Summary
A beneficiary is a person or entity that is legally entitled to receive money or other benefits from a trust, will, insurance policy, retirement plan, annuity, or other contract. The beneficiary is usually designated by the person who creates the trust or contract, and the beneficiary may be an individual, a group of people, or a charity. For more information about beneficiaries, you can visit the Internal Revenue Service (IRS) website or consult a qualified attorney.
See Also
- Trustee
- Will
- Insurance Policy
- Retirement Plan
- Annuity
- Contract
- Estate Planning
- Taxation
- Gift Tax
- Trust Law
