Define the term "beneficiary" in the context of trusts.

In the context of trusts, a beneficiary is defined as an individual or entity that is entitled to benefit from the trust. This means that beneficiaries are the individuals or organizations specified in the trust agreement to receive distributions or benefits from the trust's assets as outlined by the trust document. The trust is created to manage and distribute assets for the benefit of these beneficiaries, who may receive income, principal, or other benefits based on the terms set forth by the grantor.

This term is fundamental in the realm of trusts because it delineates the individuals or entities that have a legal claim to the benefits generated by the trust's assets, whether it be during the lifetime of the trust or upon its termination. Understanding who qualifies as a beneficiary is crucial for the proper administration of trust and ensures the intentions of the grantor are honored in distributing trust assets.