Define: Life Beneficiary

A life beneficiary is an individual who is entitled to receive the income or benefits from a trust, estate, or insurance policy for the duration of their lifetime.

A life beneficiary receives the income or benefits during their lifetime, while a remainder beneficiary is entitled to receive the remaining assets or benefits after the life beneficiary’s death.

In some cases, the person designated as the life beneficiary can be changed through a legal process, such as amending the trust or updating the insurance policy. However, this may require the consent of all parties involved and adherence to specific legal requirements.

If the life beneficiary passes away, the income or benefits typically pass to the remainder beneficiary as specified in the trust, estate, or insurance policy.

In certain situations, a life beneficiary may be able to sell their interest in the trust or estate. However, this may require the approval of the court or other interested parties, and the terms of the trust or estate document may also impose restrictions on such transactions.

Under certain circumstances, a life beneficiary can be removed if they fail to meet certain conditions or obligations outlined in the trust or estate document. However, this usually requires a legal process and the involvement of the court.

The terms of the trust document will determine whether a life beneficiary is entitled to receive both income and principal. Some trusts may allow the life beneficiary to receive both, while others may restrict distributions to only income.

Yes, a minor can be named as a life beneficiary. However, a guardian or trustee will typically be appointed to manage the minor’s interests until they reach the age of majority.

In most cases, the designation of a life beneficiary cannot be changed after the death of the grantor. However, there may be exceptions if the trust or estate document allows for such changes or if there are extenuating circumstances.

Contesting the designation of a life beneficiary can be a complex legal matter. It may require proving that the designation was made under duress, fraud, or undue influence. Consulting with an attorney experienced in trust and estate law is advisable in such situations.