Beneficiaries are individuals or entities designated to receive benefits, assets, or funds from a legal arrangement, such as a will, trust, or insurance policy. They can include family members, friends, charities, or organizations, depending on the wishes of the person creating the arrangement. In the context of life insurance, for example, the policyholder names beneficiaries who will receive the payout upon their death. This ensures that the intended recipients receive financial support or assets without going through a lengthy probate process.