A beneficiary is any person or entity who is becoming the recipient of funds, gifts, or other benefits from a benefactor. Usually, a person becoming a beneficiary is the result of some form of agreement, the most popular being a life insurance policy or trust. In a life insurance policy, the a person has set up a life insurance policy to which they pay regular amounts of money, agreeing to do so until they have died. Upon that person's death, the beneficiary receives the amount of the life insurance policy. In a trust, on the other hand, a person with an estate has agreed with a trustee, who manages the funds or property according to an agreement between the two. In addition to manging the funds, the trustee also disburses funds onto the beneficiary in whatever manner was specified in the agreement. For example, a owner of the estate might state that the money in a trust can be used only for purposes of education. In that case, the trustee can manage the money as they see fit, making profits and such, but can only give out the money for approved educational expenses of the beneficiary.