Primary Beneficiary

AAA

DEFINITION of 'Primary Beneficiary'

A beneficiary in a will, trust or insurance policy that is first in line to receive named benefits. Primary beneficiaries are contrasted with contingent beneficiaries, who will only receive benefits if the primary beneficiary has died. There can be more than one primary beneficiary.

INVESTOPEDIA EXPLAINS 'Primary Beneficiary'

For example, an IRA can name a spouse as the primary beneficiary, while the same person's will may name the children as primary beneficiaries. The spouse will receive the proceeds of the IRA and the children will receive the assets for which they are named primary beneficiaries in the will. By definition, a sole beneficiary is a primary beneficiary.

RELATED TERMS
  1. Custodial Agreement

    An arrangement whereby one holds an asset or property on behalf ...
  2. Trust Fund

    A trust fund is a fund comprised of a variety of assets intended ...
  3. Beneficiary Of Trust

    A beneficiary of trust is a person for whom a trust was created, ...
  4. Next Of Kin

    A person's closest living blood relative. The next-of-kin relationship ...
  5. Secondary Beneficiary

    A person or entity that inherits assets under a will, trust or ...
  6. Will

    A legally enforceable declaration of how a person wishes his ...
Related Articles
  1. Why Your Will Should Name Designated ...
    Home & Auto

    Why Your Will Should Name Designated ...

  2. Distribution Rules For Inherited Retirement ...
    Taxes

    Distribution Rules For Inherited Retirement ...

  3. 3 Deadlines For Retirement Plan Beneficiaries
    Retirement

    3 Deadlines For Retirement Plan Beneficiaries

  4. Designating A Trust As Retirement Beneficiary
    Retirement

    Designating A Trust As Retirement Beneficiary

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center