A person entitled to an advantage, benefit, or profit (such as an inheritance under a will or the proceeds of an annuity, insurance policy, or property held in trust) arising from an appointment, assignment, disposition, instrument, or legal arrangement. creditor beneficiary. A third-party beneficiary who is to receive the benefit of a contract in satisfaction of a debt, duty, or liability owed to them by the party who purchased the benefit. Under certain circumstances, the execution of the c...