What is the role of a beneficiary in a trust?

In the context of a trust, the role of a beneficiary is to hold equitable title to the property that is placed in the trust. This means that while the legal title—the recognized ownership of the assets—remains with the trustee, the beneficiary has the right to benefit from those assets. This includes the ability to receive distributions from the trust or benefits derived from the assets, such as income generated by investments or property use.

Equitable title signifies the beneficiary's interest in the trust the trustee manages, enabling the beneficiary to enforce their rights related to the trust's contents. This distinction is fundamental, as it underscores the separation of control and benefit that characterizes trusts.

The other roles, such as managing the trust assets or holding legal title, are designated to the trustee, not the beneficiary. The trust document's creation is a responsibility of the grantor, who establishes the trust and outlines the intentions for its management and the beneficiaries' benefits.