Legal Definition of Beneficiaries: An individual who receives benefits granted to him by another. As examples, an heir is given money in a will by someone who has died; a person who is named to receive the moneys from a life insurance policy. (Institutions, corporations, charitable organizations, etcetera, may all be beneficiaries.) | Looking for a better understanding of beneficiaries and their importance? Learn about the legal definition of beneficiaries and how they play a crucial role for business owners. Explore examples, tips for clear designation, and why understanding this concept is vital for wills, trusts, insurance policies, contracts, and more. Take the necessary steps to secure your future and ensure your loved ones are taken care of