What is a beneficiary?

What is a beneficiary?

• A. The person who funds the transaction
• B. The person who benefits from a transaction
• C. The bank processing the transfer
• D. The party who records the transaction

Answer: (B)

A beneficiary is the person or entity that will receive the benefit of a transaction or asset. In a transfer, the beneficiary is the recipient of the funds or assets. For example, when you wire money to someone, that person is the beneficiary because they are the one who benefits from the transfer. The one who funds the transaction is the payer, the bank processes the transfer, and the person who records the transaction is simply documenting it—none of these roles describe who benefits from the transaction.

A beneficiary is the person or entity that will receive the benefit of a transaction or asset. In a transfer, the beneficiary is the recipient of the funds or assets. For example, when you wire money to someone, that person is the beneficiary because they are the one who benefits from the transfer. The one who funds the transaction is the payer, the bank processes the transfer, and the person who records the transaction is simply documenting it—none of these roles describe who benefits from the transaction.