Beneficiary

What Is a Beneficiary? A beneficiary is any individual, organization, or entity that is entitled to receive assets or benefits under a will, trust, insurance policy, retirement account, or other legal instrument. Beneficiary designations determine who receives specific assets upon the death of the owner and often take precedence over instructions in a will. ## Types of Beneficiaries - **Primary beneficiary** is the first in line to receive the asset or benefit - **Contingent (secondary) beneficiary** receives the benefit if the primary beneficiary predeceases the owner or is unable to accept - **Revocable beneficiary** can be changed by the owner at any time - **Irrevocable beneficiary** cannot be changed without the beneficiary's consent - **Per stirpes** designation passes the share to the beneficiary's descendants if the beneficiary predeceases the owner ## Important Considerations Beneficiary designations on financial accounts and insurance policies generally override contradictory provisions in a will. This makes it essential to keep beneficiary designations current, particularly after major life events such as marriage, divorce, the birth of children, or the death of a named beneficiary. Failing to update designations can result in assets going to unintended recipients.