Beneficiary

Dictionary Says

Definition of 'Beneficiary'

Anybody who gains an advantage and/or profits from something. In the financial world, a beneficiary typically refers to someone who is eligible to receive distributions from a trust, will or life insurance policy. Beneficiaries are either named specifically in these documents or they have met the stipulations that make them eligible for whatever distribution is specified.
Investopedia Says

Investopedia explains 'Beneficiary'

Typically, any person or entity can be named as a beneficiary of a trust, will or life insurance policy and the one distributing the funds (the benefactor) can put various stipulations on the disbursement of funds (e.g. the beneficiary must have attained a certain age or be married). There can also be tax consequences to the beneficiary. For example, while the principal of most life insurance policies is not taxed, the accrued interest might be.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Estate

    All of the ...
  2. Marital Trust

    A fiduciary ...
  3. Heir

    HeirA person who ...
  4. Bare Trust

    A basic trust in ...
  5. Designated Beneficiary

    The person who ...
  6. Intestate

    The act of dying ...
  7. Beneficial Interest

    The right to ...
  8. Trust Fund

    A trust fund is ...
  9. Revocable Trust

    A trust whereby ...
  10. Custodial Agreement

    An arrangement ...

Articles Of Interest

  1. How can I get information about my deceased husband's retirement account if his employer withholds it?

  2. Estate Planning Basics

    Deciding what will happen to your assets when you pass away is a must - no matter how wealthy you are.
  3. Find High Yield CDs

    Retire in style. Search for the 100 highest yielding CD's from Bankrate.com. Click Here!
  4. New Option For Beneficiaries: Reversionary Annuities

    This vehicle can provide survivors with guaranteed income and lower premiums.
  5. An Estate Planning Must: Update Your Beneficiaries

    Life changes make it time to rewrite your plan's designations.
  6. Mistakes In Designating A Retirement Beneficiary

    Make sure your beneficiary designations not only reflect your intentions but also meet the requirements to be effective.
  7. Designating A Trust As Retirement Beneficiary

    Designating a trust as your IRA beneficiary can be beneficial, but it requires proper planning to avoid problems.
  8. Designating A Minor As An IRA Beneficiary

    Leaving liquid assets like cash or securities to minors can be a complicated procedure. Make sure you understand how your gift will be distributed, managed and taxed.
  9. Live Longer, Retire Younger: Can You Do It?

    Use this vehicle to make sure your payout lasts as long as you do.
  10. September 30: A Key Date For Retirement Plan Beneficiaries

    Unless certain action is taken by this date, distribution rules can put the youngest inheritor at a disadvantage.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center