contingent beneficiary

A contingent beneficiary is the recipient of assets in a will, trust, or life insurance policy who will only actually receive the funds provided that certain conditions are fulfilled. The conditions can vary widely, and mostly depend entirely on the person who has designated the person a beneficiary. In a will, for example, the owner may set up a testamentary trust for their child, stating that the child is to receive x around of dollars but only after they are married and reach a certain age. The child becomes a contingent beneficiary - his receiving of the money is contingent on his turning 18 and getting married. If these conditions are not met, no money will be supplied to the beneficiary. The most common use of a contingent beneficiary is in when doubled with a primary beneficiary, When there beneficiaries have been listed in as both primary and contingent, the contingent beneficiary will only receive the money or property if the primary beneficiary has died.

Fast Facts

the conditions of the contingent beneficiary can be changed if the trust is revocable

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