What is a Contingent Beneficiary?
Contingent beneficiaries are persons, trusts, or estates that are designated to receive the assets of a deceased person in the event that the primary beneficiary is no longer able to assume those assets for some reason. Attorneys commonly recommend that wills contain a reference to at least one contingent beneficiary as a means of preparing a backup plan for the disposition of the property and other holdings of the deceased if necessary. It is permissible to name more than one contingent beneficiary and even to assign a specific order of succession to the additional listed persons or entities. The concept of a contingent beneficiary is also often employed with insurance policies as well. For example, a life insurance may name a spouse or partner as the beneficiary of the proceeds from the policy upon the death of the insured party. At the same time, the terms of the policy may make it possible for the insurance company to award the proceeds of the policy to children, or other relatives
