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Simple English definitions for legal terms
income beneficiary
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A quick definition of income beneficiary:
An income beneficiary is a person who receives regular payments from a trust or other property. This means they get money or other benefits on a regular basis. The income beneficiary is usually named in a legal document, like a trust agreement. They are not the owner of the property, but they have the right to receive income from it. This is different from a primary beneficiary, who is the person who will receive the property when the trust ends or the owner dies.
A more thorough explanation:
An income beneficiary is a person who is entitled to receive income from a property or trust. This means that they receive regular payments from the property or trust, but they do not own the property or trust itself.
For example, if a person sets up a trust and designates their child as the income beneficiary, the child will receive regular payments from the trust, but they do not own the trust itself. The trust may be set up to provide for the child's needs, such as education or medical expenses.
Another example is a retirement account. If a person designates their spouse as the income beneficiary of their retirement account, the spouse will receive regular payments from the account after the person's death, but they do not own the account itself.
Overall, an income beneficiary is someone who receives regular income from a property or trust, but does not own the property or trust itself.