Beneficiary
Also called: named beneficiary, trust beneficiary
Updated June 7, 2026
Beneficiaries in wills and trusts
A will names beneficiaries for the assets that pass through the estate. A trust document names the people or organizations who benefit from the trust property over time or upon distribution. In both cases, clear and current designations prevent confusion and legal disputes.
Beneficiaries on financial accounts
Many financial accounts — retirement plans, life insurance policies, bank accounts with a payable-on-death designation — pass directly to a named beneficiary without going through probate at all. Because these designations override what a will says, it is important to keep them updated after major life changes such as marriage, divorce, or the birth of a child.
Primary and contingent beneficiaries
A primary beneficiary receives the asset first. A contingent beneficiary receives it only if the primary beneficiary has already passed or cannot receive the inheritance. Naming at least one contingent beneficiary on each account is a simple precaution that can avoid complications later.
Related terms
- Heir — An heir is a person who is legally entitled to inherit from an estate under state intestacy law — typically a spouse, child, parent, or other close relative. The term is often used more loosely to mean anyone who inherits, whether under a will or by law, but in its precise sense it refers only to those who would inherit if there were no will.
- Trustee — A trustee is the person or institution responsible for managing the assets held inside a trust, in accordance with the trust document and in the interest of the beneficiaries. The trustee holds legal title to the trust property but must use it only for the purposes the trust specifies.
- Payable on Death — Payable on death (POD) is a designation on a bank account, certificate of deposit, or similar financial account that names one or more people to receive the account balance directly upon the account holder's death, without going through probate. The parallel term for brokerage and investment accounts is transfer on death (TOD).
- Residuary Estate — The residuary estate is everything that remains in a deceased person's estate after all specific bequests have been made, debts and taxes have been paid, and costs of administration have been settled. The will's residuary clause names who receives this remainder — often the bulk of the estate.
- Per Stirpes — Per stirpes is a Latin phrase meaning "by the branch." When an inheritance is distributed per stirpes, a deceased beneficiary's share passes to their descendants rather than lapsing or being split among the surviving beneficiaries. If a child of the deceased predeceased them, that child's share goes to their own children (the grandchildren of the deceased) in equal parts.
Legatus Vault keeps your wills, trusts, and estate documents in one secure place and releases them — only when the time comes, and only after careful verification — to the people you choose.