What is a beneficiary: basic definitions

On the question of what a beneficiary is, the answer is the following list of legal entities and individuals:

1. Receiving income from personal property, which is in trust or used by third parties. An example is the leasing of movable and immovable property or the transfer of shares for use by brokers.
2. Assigned recipients of insurance payments. At the same time, what is a beneficiary can be seen in the insurance policy, as property insurance can be carried out in favor of an outsider. In the case of the death of the beneficiary before the payment of benefits, the heir appears as the beneficiary.
3. Specified by the issuing bank as the owner of the documentary credit documentary.
4. Receiving cash collection.
5. Receiving a bank certificate.

What is a beneficiary?

Thus, it is the recipient of various benefits and benefits, income and profits, as well as cash payments in accordance with the debt document or contract.

Often in the specialized literature one can find the term "beneficiary". However, this is a complete analog of the concept under consideration.

The procedure for determining the beneficiary

In the process of registration of an offshore company, the director, shareholder and secretary are primarily registered. However, the real name of the final beneficiary is very rarely mentioned. Thus, when determining what a beneficiary is, it can be confidently asserted that this is the real owner of the company. It is understood that this is some physical (legal) person who is actually the owner of the company, but in accordance with the constituent and registration documents, this enterprise belongs to other persons. The beneficiaries of the legal entity are the real owners of its assets. Often, under this definition, you can meet the exporter in accordance with the concluded special agreements. Synonyms of this concept are considered to be two terms: "recipient of profit" and "beneficiary". However, its meaning is:

- the beneficiary is the recipient of the rent;

- the beneficiary under the documentary letter of credit - the person for whom the bank opens a letter of credit;

- a person who receives rent as an income when renting an object;

- this is the heir when inheritance is obtained by will;

- also it is the beneficiary of the sum insured at registration of the corresponding policy; With life insurance in the contract, a reservation on the recipient of payment is possible (any person can be indicated).

Rights of the beneficiary

This issue has already been reflected in domestic legislation. Very clearly the rights of such a physical (legal) person can be considered on the example of lending. Especially if the beneficiary acts as a bank guarantor, as a creditor, who has the right to receive cash. The insurance organization or bank as a bank guarantee for the implementation of this payment issues a written document to the beneficiary.