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Related to Beneficiary: contingent beneficiary


Term used to refer to the person who receives the benefits of a trust or the recipient of the proceeds of a life insurance policy.


1. In insurance, the person or (more rarely) organization that receives money from the insurance company when the insured event occurs. For example, in life insurance, when the insured person dies, a beneficiary may be his/her spouse This means that the spouse receives the agreed-upon amount of money from the insurance company.

2. In annuities, the annuitant. The annuitant is the person who receives the agreed-upon amount of money from the annuity starting at the agreed-upon time. Depending on the type of annuity, the annuitant may be the person who paid into the annuity, or may be a relative or other designee of that person, such as a widow or widower.


A beneficiary is the person or organization who receives assets that are held in your name in a retirement plan, or are paid on your behalf by an insurance company, after your death.

If you have established a trust, the beneficiary you name receives the assets of the trust.

A life insurance policy pays your beneficiary the face value of your policy minus any loans you haven't repaid when you die. An annuity contract pays the beneficiary the accumulated assets as dictated by the terms of the contract.

A retirement plan, such as an IRA or 401(k), pays your beneficiary the value of the accumulated assets or requires the beneficiary to withdraw assets either as a lump sum or over a period of time, depending on the plan. Some retirement plans require that you name your spouse as beneficiary or obtain written permission to name someone else.

You may name any person or institution -- or several people and institutions -- as beneficiary or contingent beneficiary of a trust, a retirement plan, annuity contract, or life insurance policy. A contingent beneficiary is one who inherits the assets if the primary beneficiary has died or chooses not to accept them.


A person who receives the benefits from something although perhaps not the legal owner of the thing.In real estate,the term is usually encountered in the context of a trust,in which a trustee holds what is called bare legal title to the property,but the property itself and all sums gained from the property are held for the beneficiary.Care should be taken when buying,selling,or leasing property that involves a beneficiary,and,if at all possible,one should gain the beneficiary's signature even though it is not technically required.Otherwise,you could find yourself in the middle of litigation between the trustee and the beneficiary if the beneficiary claims the actions taken were illegal and not authorized.

References in periodicals archive ?
Ideally, the NONC should be hand-delivered to the beneficiary with the beneficiary signing the NONC as proof of receipt.
Results of the analysis of variance to test the interaction effect for closure status and disability beneficiary status on the variable of highest grade completed yielded an interaction effect, F (2, 109) = 4.
Additionally, the adjustment power generally is not available (1) where it would reduce a transfer tax deduction based on income interest actuarial value; (2) if the trust is operated as a unitrust; or (3) if the trustee is also a beneficiary of the trust [CPC Sec.
Allow Medicare to collect only "minimum information" necessary from physicians to assure the program does not pay for services that have already been paid for by the beneficiary.
t]he intent to confer a third-party beneficiary benefit is to be determined from the language of the contract .
Example 1: Trust T is a unitrust that pays beneficiary B 4% of the fair market value of its assets annually.
Under one scenario transfers are completed gifts to a designated beneficiary but, under section 102(c), transfers by or for an employer to, or for the benefit of, an employee are not excludible from income as gifts.
During the current income beneficiary's life, the trust can have only one income beneficiary (a husband and wife who file jointly are treated as one beneficiary for this purpose);
Even if there is only one current beneficiary, don't forget about the remainder beneficiaries.
However, he or she cannot make another tax-free gift to the same beneficiary for five years.
The DRA provision limits rental payments for home oxygen therapy to 36 months, and forces the beneficiary to own the oxygen equipment from that point forward.