Who benefits from a trust?

The correct answer, C, highlights that the beneficiary is the individual or entity that receives benefits from a trust. In a trust arrangement, the settlor creates the trust and transfers assets into it for the purpose of benefiting the beneficiaries. The trustee is responsible for managing the trust assets according to the terms set out by the settlor, ensuring that the interests of the beneficiaries are met according to the trust's governing documents. Therefore, it is the beneficiary who directly benefits from the trust, either through income, assets, or other benefits as described in the trust document.

In this context, while the settlor creates the trust and the trustee administers it, neither the settlor nor the trustee derives direct financial benefits from the trust in the same way the beneficiary does. The testator, on the other hand, refers to an individual who has made a will and does not have any specific relationship with a trust unless they are also a settlor modifying their estate plans. Thus, the emphasis is on the beneficiary as the primary recipient of the trust's advantages.