beneficiary

ben·e·fi·ci·ar·y   (běn'ə-fĭsh'ē-ěr'ē, -fĭsh'ə-rē)    n.   pl. ben·e·fi·ci·ar·ies One that receives a benefit: I am the beneficiary of your generosity. The recipient of funds, property, or other benefits, as from an insurance policy or will. Ecclesiastical The holder of a benefice. [Medieval Latin beneficiārius, holder of a feudal benefice, from Latin, soldier granted privileges, from beneficium, benefit; see benefice.] ben'e·fi'ci·ar'y adj.

beneficiary [(ben-uh-fish-ee-er-ee, ben-uh-fish-uh-ree)]

The recipient of funds, property, or other benefits from an insurance policy, will, trust, or other settlement.

Beneficiary

A person or entity named in a will or financial contract as the inheritor of property when the property owner dies.

Investopedia Commentary

A beneficiary can be a spouse, child, charity, or any entity or person to whom the property owner would like to leave his or her possessions and assets.

Related Links

Who Is The Beneficiary Of Your Account?
Inherited Retirement Plan Assets - Part 1
Inherited Retirement Plan Assets - Part 2
The Importance of Sept 30 for Multiple Beneficiaries

See also: Estate, Extended IRA, Heir, Will

Main Entry: ben·e·fi·cia·ry
Pronunciation: "be-n&-'fi-shE-"er-E, -'fi-sh&-rE
Function: noun
Inflected Form: plural -ries
: a person or entity (as a charity or estate) that receives a benefit from something: as a : the person or entity named or otherwise entitled to receive the principal or income or both from a trust —compare SETTLOR, TRUSTEE

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contingent beneficiary
: a beneficiary that may receive proceeds from a trust depending on the occurrence of a specified event (as the death of another beneficiary)

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income beneficiary
: a beneficiary that according to the provisions of a trust is to receive income but not the principal of the trust
NOTE: A trust may provide for income to be paid to someone (as a spouse) for his or her lifetime and then for payment of the principal to another person. A trustee is sometimes allowed to distribute some of the principal of the trust to an income beneficiary when necessary for the support of the beneficiary if support of the beneficiary was the purpose of the trust. b : the person or entity named by the insured of a life insurance policy to receive the proceeds upon the insured's death

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contingent beneficiary
: a beneficiary named to receive the insurance proceeds if the primary beneficiary has died called also secondary beneficiary

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pri·ma·ry beneficiary
/'prI-"mer-E-, -m&-rE-/
: a beneficiary named to receive the insurance proceeds before any other

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sec·ond·ary beneficiary
/'sek-&n-"der-E-/
: CONTINGENT BENEFICIARY in this entry c : a person or entity entitled under a letter of credit to demand payment from the issuer of the letter d : a person or entity that benefits from a promise, agreement, or contract; especially : THIRD-PARTY BENEFICIARY in this entry beneficiaries…are mortgagees and investors —Key Pacific Mortgage Incorporated v. Industrial Indemnity Company, 845 Pacific Reporter, Second Series 1087 (1993)>

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creditor beneficiary
: a direct beneficiary whom the party paying for the other party's performance intends to benefit as payment for a debt or obligation —compare DONEE BENEFICIARY in this entry

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direct beneficiary
: a third-party beneficiary to a contract whom the parties to the contract intended to benefit —compare INCIDENTAL BENEFICIARY in this entry

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donee beneficiary
: a direct beneficiary whom the party paying for the other party's performance intends to benefit as a gift or donation

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incidental beneficiary
: a third-party beneficiary to a contract whom the parties to the contract did not intend to benefit —compare DIRECT BENEFICIARY in this entry

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third–party beneficiary
: a person or entity that is not a party to but has rights under a contract made by two other parties