Who is entitled to receive benefits from a will, insurance policy, trust agreement or employee benefit plan?

• A. Heir
• B. Beneficiary
• C. Legatee
• D. Trustor

Answer: (B)

Beneficiary is the person or entity designated to receive benefits from a will, life insurance policy, trust agreement, or employee benefit plan. This designation specifies who will collect assets or distributions when the instrument is activated. An heir is someone who would inherit by state law if there were no will, not necessarily someone named to receive benefits under these instruments. A legatee is an older term for a person who inherits under a will, but the modern, common term is beneficiary. A trustor (also called settlor or grantor) is the person who creates and funds a trust, not the recipient of its distributions. So, the recipient of benefits across these instruments is the beneficiary.