Income Beneficiary
Updated: 29 February 2024
What Does Income Beneficiary Mean?
An income beneficiary is a person who has been designated to receive a certain amount of income from a trust. Although income beneficiaries receive income from trusts, they do not actually have access to a trust's principal, or the total amount of money originally placed into the trust.
Insuranceopedia Explains Income Beneficiary
Income beneficiaries are often children whose parents set up the trust to give them financial help. Grandparents frequently set them up for their grandchildren as well. Establishing income beneficiaries is a great way for people to give money while controling the disbursement to some extent, avoiding the risk of them spending the entire trust irresponsibly.
Related Definitions
Related Terms
Related Articles
12 Disability Benefit Riders to Improve Your Coverage
An Intro to Workers’ Compensation
Insurance Self-Service Portal: The Future of Customer Experience
Blockchain’s Impact on Transforming the Insurance Landscape
What Every College Student Should Know About Renters Insurance
Guidance for Nurses: Five Essential HIPAA Compliance Tips
Related Reading
Revealing the Most And Least Popular U.S. Insurance Companies
What Students Need to Know About Insurance Coverage During Internships
A Roadmap for Students Interested in the Insurance Industry
Strong Identity Verification in the Insurance Sector
How to Avoid Online Insurance Scams
How to Get Into the Insurance Industry With a Finance Degree