Beneficiary
A person or organization named to receive an asset — from a will, a trust, an insurance policy, or a retirement account.
Beneficiary means something slightly different depending on where the name appears, and the distinction matters. A beneficiary of a will receives what the will directs after probate. A named beneficiary on an account receives that account directly, usually without probate at all.
Name contingent beneficiaries as well as primary ones, and avoid naming a minor child directly, which typically forces court involvement.
Related Terms
Beneficiary Designation
The form on file with a financial institution naming who receives an account when you die. It passes outside your will — and overrides it.
Will
A legal document directing who receives what you own in your own name, and naming a guardian for any minor children.
Trustee
The person or institution responsible for managing a trust and following its instructions for the benefit of the beneficiaries.
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