Contingent Beneficiary

Definition

• A beneficiary who receives payment only if certain stipulated conditions have been met. Commonly used in a will, the conditions for a contingent beneficiary can be anything the person drafting the will wishes, with requirements ranging from the conventional to the bazaar.

Synonyms
dependent beneficiary, uncertain beneficiary, incidental beneficiary

Related Terms and Acronyms

• Beneficiary — Definition,
  • An individual or entity chosen to receive benefits from a will, trust, deed or insurance policy.
• Contingent Liability — Definition,
  • A legal responsibility to pay certain sums conditional on a future event such as a law suit or court case.
• Death Benefit (DB) — Acronym, Very Important,
  • A payment or series of payments made to the beneficiaries of a life insurance policy.
  ➥ An amount paid to a beneficiary in a life linsurance policy.
• Estate Planning — Definition,
  • The process of determining how assets will be dispersed after an individual's death, ideally in the most tax-efficient way possible.
• Fiduciary — Definition,
  • An individual, company, or association that manages assets for another party. Fiduciaries include executors of wills and estates, trustees, receivers in bankruptcy, and those responsible for managing the finances of a minor.
• Irrevocable Beneficiary — Definition,
  • A life insurance or segregated fund beneficiary whose benefit cannot be revoked or modified in any way without his or her consent.
• Revocable Beneficiary — Definition,
  • A beneficiary whose benefit can be modified without his or her consent.
• Trust — Definition,
  • A fund established like a will, specifying how money or property will be disbursed, lists the recipients or beneficiaries and names one or more trustees to manage the assets. An irrevocable trust can't be changed after the terms are finalized; a revocable trust has more legroom in how much can be transferred, but is usually costlier to maintain.
• Will — Definition,
  • A document that states what must be done with a person's estate after his or her death.