Beneficiary
A person or organization designated to receive assets from a will, trust, life insurance policy, retirement account, or other financial arrangement. You can name multiple beneficiaries and specify what each receives.
Legal Definition
A person or entity entitled to receive a benefit, distribution, or devise under the terms of a will, trust, insurance policy, retirement plan, or other instrument.
Practical Example
Lisa names her two children as equal beneficiaries of her life insurance policy. She also names a local charity as a beneficiary of her trust to receive 10% of the trust assets.