What is the definition of a beneficiary in relation to a trust?

In the context of a trust, a beneficiary is defined as the individual or entity that receives benefits from the trust's assets. This can include income generated by the trust, distributions of property, or any other assets that the trust is set up to provide. The role of the beneficiary is central to the purpose of the trust, which is generally established to manage and distribute assets for the benefit of the designated individuals or entities.

The other options represent different roles associated with a trust. The person who creates the trust is known as the grantor or settlor, who outlines the terms and intentions of the trust. The individual who manages the trust is called the trustee, responsible for overseeing the trust's operations and ensuring that the assets are used according to the grantor's wishes. The lawyer involved with the trust typically provides legal guidance and ensures that the trust complies with relevant laws, but does not have a stake in the assets of the trust as a beneficiary would. Understanding the distinct roles within a trust structure clarifies why the beneficiary is specifically defined as someone who benefits from the trust's assets.