- /benafish(iy)ary/ One who benefits from act of another. A party who will benefit from a transfer of property or other arrangement. Examples include the beneficiary of a trust, the beneficiary of a life insurance policy, and the beneficiary of an estate.See also creditor beneficiary- primary beneficiary- third party beneficiary.Credit.A "beneficiary" of a credit is a person who is entitled under its terms to draw or demand payment. U.C.C. No. 5-103(d).See also creditor beneficiaryIncidental beneficiary.A person who may derive benefit from performance on contract, though he is neither the promisee nor the one to whom performance is to be rendered. Salzman v. Holiday Inns, Inc., 48 A.D.2d 258, 369 N.Y. S.2d 238, 242.See also incidental beneficiaryInsurance.The person entitled to take proceeds on death of insured. Letter of credit. In a letter of credit transaction, the "person who is entitled under its terms [i.e., the terms of the credit] to draw or demand payment." U.C.C. No. 5-103(lXd).Taxation. One who is assessed as the real owner.See also income beneficiaryTrust.As it relates to trust beneficiaries, includes a person who has any present or future interest, vested or contingent, and also includes the owner of an interest by assignment or other transfer and as it relates to a charitable trust, includes any person entitled to enforce the trust. Uniform Probate Code, No. 1-201. A person named in a trust account as one for whom a party to the account is named as trustee. Uniform Probate Code, No. 6-101. Person for whose benefit property is held in trust. Restatement, Second, Trusts No. 3.Will. Person named in will to receive specified property
Black's law dictionary. HENRY CAMPBELL BLACK, M. A.. 1990.