Beneficiaries

A beneficiary is an individual or entity (such as a charitable organization or trust) who is legally designated to receive assets, benefits, or proceeds from another person, typically after that person's death. These assets can include financial accounts (like life insurance policies, retirement accounts, brokerage accounts, bank accounts), physical property, or other valuables left behind by the deceased.

There are two main types of beneficiaries:

• Primary beneficiary: The first person or entity designated to receive the assets.
• Contingent beneficiary: A backup beneficiary who receives the assets if the primary beneficiary is deceased, incapacitated, or unable to accept the inheritance.

Naming beneficiaries is a key part of estate planning, helping ensure that assets are distributed according to the owner's wishes and often avoiding probate court delays. Beneficiaries can be individuals, charities, nonprofits, or trusts, and designations can be changed by the asset owner through proper paperwork.

In summary, a beneficiary is the recipient of benefits or assets from someone else, usually after that person's death, and can be a person or an organization legally entitled to inherit or receive those assets.