Beneficiary

A beneficiary is a person (or entity) who will receive assets from an account, usually as part of an inheritance.

A beneficiary is a person (or an entity like a charity or college) entitled to receive some or all of the assets in an account when the original owner dies. Retirement accounts, wills, trusts, and life insurance policies all have designated beneficiaries.

Some accounts may have primary and contingent beneficiaries. The contingent beneficiary is entitled to receive assets when the primary beneficiary is unable to do so.

Trusts can have separate income beneficiaries and principal beneficiaries, where the former receives any income earned on the account and the latter receives the principal, provided the stipulations of the trust are satisfied.