Beneficiary


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Related to Beneficiary: contingent beneficiary

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.

Beneficiary

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.

Beneficiary.

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.

beneficiary

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 ?
If the designated beneficiary is the surviving spouse, required minimum distributions need not commence before the year in which the deceased account holder would have attained age 701/2 had he or she lived until then.
The beneficiary designation should describe the person with sufficient clarity and certainty so that the insurer can easily identify the proper person, make payment, and obtain a valid release.
If a petitioner does not apply for the principal beneficiary, USCIS will not consider the associated derivative beneficiaries under the FWVP Program.
93-31, the IRS ruled that a separate share of a trust cannot qualify as a QSST if there is even a remote possibility that the trust corpus will be distributed during the current income beneficiary's lifetime to someone other than the current income beneficiary.
This includes the bank's agreement to issue the letter of credit, the terms of the letter of credit, the customer's obligation to reimburse the bank for payments made to the beneficiary upon the presentation of conforming documents, the bank's charges and commissions earned from issuing the letter of credit, and the collateral security for the customer's reimbursement obligation to the bank.
A support trust directs the trustee to apply the trust's income and/or principal as is necessary for the support of a beneficiary. The beneficiary of a support trust can compel the trustee to make a distribution of trust income or principal merely by demonstrating that the money is necessary for the beneficiary's support, maintenance, education or welfare, or whatever other standard is contained in the trust.
The individual beneficiaries may then take minimum distributions over the life expectancy of the oldest remaining beneficiary or over their individual life expectancies if the account is divided into separate accounts for each remaining individual beneficiary.
If you designate The VRG as a beneficiary of a will, pension plan, or life insurance policy, please use our full, legal name: The Vegetarian Resource Group, Inc.
If the IRA owner has begun to receive distributions and dies before the entire balance is distributed, the regulations require that the remaining balance must be distributed over the life expectancy of the beneficiary or the remaining life expectancy of the IRA owner, whichever is longer.
The qualified Medicare beneficiary and specified low-income Medicare beneficiary programs legislated in the 1990s created new ways for Medicare beneficiaries to qualify for Medicaid assistance.
Another element is assuring that a beneficiary's drug therapy be managed through an interdisciplinary approach to patient care, "incorporating the collaborative efforts of a patient's pharmacist, physician, nurses and other health-care professionals." The academy suggests that this be accomplished with the use of tools by managed health-care systems to improve the quality of care, quality of life and therapeutic out comes of individual patient populations, while conserving scarce health-care resources.
If the M+CO completely reverses its determination, the appeal is complete, the beneficiary or provider is notified, and the claim is paid or the service is authorized.