Definition - 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.