Legal Definitions - expectant beneficiary

An expectant beneficiary is an individual who has an expectation of receiving a future benefit, such as property or funds, but whose right to that benefit is not yet legally certain or fully established. This expectation is often based on a will, a trust, or inheritance laws, but it can be revoked, altered, or extinguished before the benefit is actually received. Unlike a vested beneficiary who has a current, legally enforceable right, an expectant beneficiary's interest is contingent and not yet guaranteed.

• Example 1: Potential Heir in a Will
  Imagine Sarah's grandmother has a will that states Sarah will inherit her antique jewelry collection. However, the grandmother is still alive and of sound mind. Sarah is an expectant beneficiary because, while she expects to receive the jewelry, her grandmother could choose to change her will at any time, sell the jewelry, or even outlive Sarah. Sarah's right to the jewelry is not yet fixed or guaranteed.
• Example 2: Beneficiary of a Revocable Trust
  John's parents established a revocable living trust, naming John as a beneficiary to receive a portion of their estate upon their passing. Since the trust is revocable, his parents retain the power to amend its terms, change beneficiaries, or even dissolve the trust entirely during their lifetimes. Therefore, John is an expectant beneficiary; his interest is subject to his parents' ongoing control and could change.
• Example 3: Heir Under Intestacy Laws
  Consider David, who is the only living child of his elderly father, who has not created a will. Under the state's intestacy laws (rules for distributing property when someone dies without a will), David expects to inherit his father's entire estate. However, his father could still decide to write a will, marry someone new, or spend all his assets. Until his father passes away and the estate is settled according to the law, David is an expectant beneficiary because his inheritance is not yet a legally vested right.