Who is entitled to the interest, dividends, or growth of a trust?

The trust beneficiaries are entitled to the interest, dividends, or growth of a trust. This is because a trust is created to benefit designated individuals or groups, known as beneficiaries, who are specified in the trust document. The income generated by the trust assets, such as interest and dividends, typically accrues to these beneficiaries while the principal remains intact or is distributed according to the terms of the trust.

Beneficiaries have specific rights to the benefits of the trust, and this includes the earnings generated during the trust’s existence. Understanding the role and rights of beneficiaries is a fundamental aspect of trust law, as it determines who has a claim to the resources within the trust. In cases involving funeral trusts, it is essential to recognize that the intent of such trusts is to ensure that the funds are used for the benefit of the named beneficiaries, usually to cover funeral expenses and related costs.