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# What is a beneficiary?

||| Beneficiaries are individuals or entities designated to receive trust distributions, such as income or assets.

Beneficiaries have certain rights and interests in the trust assets. A trust deed usually outlines these rights, including the right to receive income, the right to request information about the trust, and the right to challenge trust actions that may adversely affect them.

###### Common types of beneficiaries

| Type | Description |
| --- | --- |
| Primary beneficiaries | Individuals or organisations named explicitly in the trust deed to receive a benefit emanating from the trust. |
| Contingent Beneficiaries | Entitled to benefits under specific conditions, such as if the primary beneficiaries are deceased, unable to be located, or refuse their inheritance at the time when the proceeds are to be paid. |
| Income beneficiaries | Entitled to receive income generated by the trust assets. |
| Capital Beneficiaries | Entitled to receive distributions of the trust's capital. |
| Discretionary Beneficiaries | The trustee has discretion in determining which beneficiaries receive distributions and how much they receive. |