A beneficiary usually refers to a party who is entitled to the benefit of a trust. That is, if one party puts property into a trust to be held for someone else, that “someone else” is the beneficiary of the trust.
Note that when a trust deed is used in real estate, the borrower puts their property into a trust to be held in case the borrower defaults. If the borrower defaults on the loan, the trustee will sell the property and give the proceeds of the sale to the beneficiary of the trust (in this case, the beneficiary of the trust is the lender).
Another type of beneficiary is one who receives property from an estate. This property is passed from the trust to the beneficiary by the trustee.
