A contingent beneficiary is a secondary recipient designated to receive benefits from a will, trust, insurance policy, or retirement account if the primary beneficiary is unable to receive the benefits. The contingent beneficiary only receives benefits if certain conditions or events specified in the document occur, such as the death of the primary beneficiary before the account holder or policyholder. Contingent beneficiaries serve as a backup in case the primary beneficiary is unable to fulfil their role, ensuring that assets are distributed according to the account holder’s or policyholder’s wishes. If the primary beneficiary is able to receive the benefits, the contingent beneficiary does not receive anything.
An individual who is entitled to receive the benefits of an insurance policy if the primary beneficiary dies.
n. a person or entity named to receive a gift under the terms of a will, trust, or insurance policy who will only receive that gift if a certain event occurs or a certain set of circumstances happen. Examples: surviving another beneficiary, still being married to the same spouse, having completed college, or being certified as having shaken his/her drug habit.
- An alternate beneficiary is named in a will, trust, or other document.
- Any person is entitled to property under a will if one or more prior conditions are satisfied.
For example, if Fred is entitled to take property under a will only if he’s married at the time of the will maker’s death, Fred is a contingent beneficiary. Similarly, if Ellen is named to receive a house only in the event her mother, who has been named to live in the house, moves out of it, Ellen is a contingent beneficiary.
A contingent beneficiary is a person or entity named in a legal document, such as a will or insurance policy, to receive certain assets or benefits if the primary beneficiary is unable to do so. The contingent beneficiary’s right to the assets or benefits is contingent upon the primary beneficiary’s inability to accept them.
A contingent beneficiary is a person or entity named in a legal document, such as a will or insurance policy, who will receive the assets or benefits if the primary beneficiary is unable to receive them.
A primary beneficiary is the person or entity named to receive the assets or benefits first. If the primary beneficiary is unable to receive them, the contingent beneficiary will receive them instead.
Yes, you can name multiple contingent beneficiaries. If the primary beneficiary is unable to receive the assets or benefits, they will be distributed among the contingent beneficiaries in the order specified.
Yes, you can change your contingent beneficiary at any time by updating the legal document in which they are named.
If you don’t name a contingent beneficiary and the primary beneficiary is unable to receive the assets or benefits, they will be distributed according to the laws of your state.
Yes, a contingent beneficiary can be a minor. However, they will need a legal guardian or trustee to manage the assets or benefits until they reach the age of majority.
No, a contingent beneficiary cannot be changed after the death of the primary beneficiary.
Yes, a contingent beneficiary can be contested in court if there is a dispute over the legal document in which they are named.
No, you do not need a lawyer to name a contingent beneficiary. However, it is recommended to consult with a lawyer to ensure that the legal document is properly drafted and executed.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 11th April, 2024.
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