Beneficiary


Beneficiary

A beneficiary (also, in trust law, referred to as the "cestui que use") in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example: The beneficiary of a life insurance policy, is the person who receives the payment of the amount of insurance after the death of the insured. The beneficiaries of a trust are the persons with equitable ownership of the trust assets, although legal title is held by the trustee. The term can also be described as an "inheritance" used in the context for the party receiving the money related thereto. Beneficiaries in other contexts are known by other names: for example, the beneficiaries of a will are called "devisees" or "legatees" according to local custom.

Most beneficiaries, may be designed to designate where the assets will go once the owner(s) ceases to exist. However, if the primary beneficiary or beneficiaries are not alive or do not qualify under the restrictions, then the assets will likely pass to the "contingent beneficiaries". Other restrictions such as being married or more creative ones can be used by a benefactor to attempt to control the behavior of the beneficiaries. Some situations such as retirement accounts do not allow any restrictions beyond death of the primary beneficiaries, but trusts allow any restrictions that are not illegal or for an illegal purpose.

The concept of a "beneficiary" will also frequently figure in contracts other than insurance policies. A third party beneficiary of a contract is a person who, although not a party to the contract, the parties intend will benefit from its provisions. A software distributor, for example, may seek provisions protecting its customers from infringement claims. A software licensor may include provisions in its agreements which protect those who provided code to that licensor.

ee also

*Beneficiary (trust)
*Inheritance
*Estate planning


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Look at other dictionaries:

  • beneficiary — ben·e·fi·cia·ry /ˌbe nə fi shē ˌer ē, fi shə rē/ n pl ries: a person or entity (as a charity or estate) that receives a benefit from something: as a: the person or entity named or otherwise entitled to receive the principal or income or both from …   Law dictionary

  • Beneficiary — Ben e*fi ci*a*ry, a. [Cf. F. b[ e]n[ e]ficiaire, LL. beneficiarius.] 1. Holding some office or valuable possession, in subordination to another; holding under a feudal or other superior; having a dependent and secondary possession. [1913 Webster] …   The Collaborative International Dictionary of English

  • beneficiary — The person who is in receipt, or will be in receipt, of some asset, thing, or thing of value. For example, a person can make a will naming someone, usually their spouse, as beneficiary of their estate. (Dictionary of Canadian Bankruptcy Terms)… …   Glossary of Bankruptcy

  • Beneficiary — Ben e*fi ci*a*ry, n.; pl. {Beneficiaries}. 1. A feudatory or vassal; hence, one who holds a benefice and uses its proceeds. Ayliffe. [1913 Webster] 2. One who receives anything as a gift; one who receives a benefit or advantage; esp. one who… …   The Collaborative International Dictionary of English

  • beneficiary — 1610s (n.), 1620s (adj.), probably via Fr. bénéficiaire, from L. beneficiarius enjoying a favor, privileged, from beneficium (see BENEFICE (Cf. benefice)) …   Etymology dictionary

  • beneficiary — [n] person who gains, benefits almsperson, assignee, devisee, donee, grantee, heir, heiress, inheritor, legatee, payee, possessor, receiver, recipient, stipendiary, successor; concepts 355,423 Ant. giver, payer …   New thesaurus

  • beneficiary — ► NOUN (pl. beneficiaries) ▪ a person who benefits from something, especially a trust or will …   English terms dictionary

  • beneficiary — [ben΄ə fish′ē er΄ē, ben΄əfish′ər ē] adj. [L beneficiarius] of or holding a benefice n. pl. beneficiaries 1. a holder of a benefice 2. anyone receiving benefit 3. a person named to receive the income or inheritance from a will, insurance policy,… …   English World dictionary

  • beneficiary — /benafish(iy)ary/ One who benefits from act of another. A party who will benefit from a transfer of property or other arrangement. Examples include the beneficiary of a trust, the beneficiary of a life insurance policy, and the beneficiary of an… …   Black's law dictionary

  • beneficiary — /benafish(iy)ary/ One who benefits from act of another. A party who will benefit from a transfer of property or other arrangement. Examples include the beneficiary of a trust, the beneficiary of a life insurance policy, and the beneficiary of an… …   Black's law dictionary

  • beneficiary — Term used to refer to the person who receives the benefits of a trust or the recipient of the proceeds of a life insurance policy. Bloomberg Financial Dictionary * * * beneficiary ben‧e‧fi‧cia‧ry [ˌbenˈfɪʆəri ǁ ˈfɪʆieri] noun beneficiaries… …   Financial and business terms


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