Beneficiary Law and Legal Definition

Generally, a beneficiary is a person or entity who receives a profit, advantage, or benefit. For example, a person named to receive something in a will is a beneficiary under such will. Similarly, a person named to receive the proceeds under an insurance proceeds is referred to as a beneficiary. A beneficiary is the person or entity named to receive assets or profits from an estate, a trust, an insurance policy or any instrument in which there is distribution. Related concepts include an "incidental beneficiary" or a "third party beneficiary" who, although not specifically named, gain a benefit, such as someone who will make a profit if a piece of property is distributed to another.