jackfrost11770
14:19
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
contingency beneficiary
Read a random definition: subscription warrant
A quick definition of contingency beneficiary:
A contingency beneficiary is someone who is designated to receive a gift or benefit if the primary beneficiary is unable or unwilling to take it. For example, if someone names their spouse as the primary beneficiary of their life insurance policy, but also names their child as the contingency beneficiary in case the spouse passes away before them. This means that if the spouse is unable to receive the benefit, the child will receive it instead.
A more thorough explanation:
A contingency beneficiary is a person who is designated to receive a gift or benefit if the primary beneficiary is unable or unwilling to take it. For example, if a person names their spouse as the primary beneficiary of their life insurance policy, but also designates their child as the contingency beneficiary in case the spouse predeceases them or declines the benefit.
Another example of a contingency beneficiary is a person named in a will to receive a gift if the primary beneficiary is unable to take it. For instance, if a person leaves their estate to their spouse, but also designates their child as the contingency beneficiary in case the spouse dies before them.
Contingency beneficiaries are important because they ensure that the gift or benefit will still go to someone if the primary beneficiary cannot take it. This provides a backup plan and ensures that the person's wishes are still carried out.