What group does the term 'beneficiary' refer to in the context of a trust?

In the context of a trust, the term "beneficiary" specifically refers to the individual or group of individuals who are entitled to benefit from the trust's assets. This can include receiving income generated by the trust or the distribution of the trust’s principal upon certain conditions being met, such as at a specific age or event. The essence of a trust is to manage assets for the benefit of another party, and thus the beneficiary is a central figure in this arrangement.

The person who creates the trust, often referred to as the grantor or settlor, is responsible for establishing the terms and conditions under which the trust operates but does not benefit from the trust itself in the same way that a beneficiary does. The individual managing the trust assets, known as the trustee, acts on behalf of the beneficiaries but does not benefit from the trust’s assets unless specifically designated as a beneficiary. Similarly, the attorney overseeing the trust is typically responsible for legal matters concerning the trust but does not inherently have a claim to the benefits provided by the trust unless they are also designated as a beneficiary. Thus, the term "beneficiary" is uniquely associated with those who gain from the trust.