Beneficiary
The lender on the security of a note and deed of trust.
A beneficiary is an individual who receives a benefit, which is typically given as a financial distribution. Beneficiaries can be individuals, families, businesses, and organizations. Benefits come in many forms, including social security benefits, survivor benefits, rental income, and life insurance proceeds. In addition, trusts, estates, foundations, and charities may have beneficiaries. When a person or other entity is the beneficiary of a benefit, the source of the benefit is usually specified. For example, life insurance policies often list a beneficiary as the recipient of the death benefit. Other benefits are distributed directly to the beneficiary at the discretion of the plan or trust administrator. The Internal Revenue Service may also be involved in handling certain benefits, particularly those that are taxable. Beneficiaries of benefits are usually informed of the benefit amount and the source via mail or email. Beneficiaries typically have a certain level of responsibility, such as filing forms or paying taxes on the funds received, but should receive guidance from the source of the benefit or their tax advisor.