The definition of a Beneficiary is any person who gains an advantage and/or profits from something. In the financial world, a beneficiary typically refers to someone eligible to receive distributions from a trust, will, or life insurance policy. Beneficiaries are either named specifically in these documents or have met the stipulations that make them eligible for whatever distribution is specified.There can be many reasons why someone might name beneficiaries for their assets. For example, if they want their loved ones to inherit everything after they die, they would list those people as beneficiaries on their will or trust document. Alternatively, if they want to ensure that a particular charity receives donations after they die, then they would name that charity as the beneficiary of their estate plan.It's important to remember that being named as a beneficiary doesn't mean you're automatically entitled to anything. The terms of each specific document must be followed in order to determine who gets what and when. If there are disagreements among beneficiaries about how assets should be distributed, it can lead to costly legal battles between family members or friends.
