Define: Contingent Beneficiary

Contingent Beneficiary
Contingent Beneficiary
Quick Summary of Contingent Beneficiary

A contingent beneficiary is a secondary recipient designated to receive benefits from a will, trust, insurance policy, or retirement account if the primary beneficiary is unable to receive the benefits. The contingent beneficiary only receives benefits if certain conditions or events specified in the document occur, such as the death of the primary beneficiary before the account holder or policyholder. Contingent beneficiaries serve as a backup in case the primary beneficiary is unable to fulfil their role, ensuring that assets are distributed according to the account holder’s or policyholder’s wishes. If the primary beneficiary is able to receive the benefits, the contingent beneficiary does not receive anything.

What is the dictionary definition of Contingent Beneficiary?
Dictionary Definition of Contingent Beneficiary

An individual who is entitled to receive the benefits of an insurance policy if the primary beneficiary dies.

n. a person or entity named to receive a gift under the terms of a will, trust or insurance policy, who will only receive that gift if a certain event occurs or a certain set of circumstances happen. Examples: surviving another beneficiary, still being married to the same spouse, having completed college, or being certified as having shaken his/her drug habit.

  1. An alternate beneficiary named in a will, trust or other document.
  2. Any person entitled to property under a will if one or more prior conditions are satisfied.

For example, if Fred is entitled to take property under a will only if he’s married at the time of the will maker’s death, Fred is a contingent beneficiary. Similarly, if Ellen is named to receive a house only in the event her mother, who has been named to live in the house, moves out of it, Ellen is a contingent beneficiary.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 28th March, 2024.

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