Legal Definitions - death beneficiary

A death beneficiary is an individual or entity legally designated to receive assets, property, or financial benefits after another person has passed away. This designation is typically established through formal legal instruments such as a will, a trust, a life insurance policy, or a retirement account.

• Example 1: Life Insurance Policy

  Sarah purchased a life insurance policy and named her brother, David, as the sole recipient of the policy's payout. Upon Sarah's death, the insurance company will pay the designated sum directly to David.

  How it illustrates the term: David is the death beneficiary because he is the specific person designated to receive a financial benefit (the life insurance payout) upon Sarah's death.

• Example 2: Will and Real Estate

  Mr. Henderson's will explicitly states that his vacation home should be transferred to his daughter, Emily, after his passing. When Mr. Henderson dies, the property will legally become Emily's.

  How it illustrates the term: Emily is the death beneficiary because she is designated in her father's will to receive a specific asset (the vacation home) upon his death.

• Example 3: Retirement Account Designation

  Maria worked for many years and accumulated a substantial 401(k) retirement fund. She completed a beneficiary designation form with her financial institution, naming her husband, Carlos, and her two children, Lisa and Michael, to share the remaining balance equally upon her death.

  How it illustrates the term: Carlos, Lisa, and Michael are the death beneficiaries because they are the individuals designated to receive the assets from Maria's retirement account after she passes away, as per her official designation.