Glossary/Wealth planning

Beneficiary

Also known as Designated recipient

A beneficiary is a person or organization designated to receive assets, income, rights, or benefits under an account, policy, trust, will, plan, or applicable law.

Editorially reviewed 2026-07-30

Why beneficiary matters

Designation can control transfers outside a will and affect tax, control, timing, and family outcomes.

How it is applied

Owners review primary and contingent beneficiaries, percentages, legal names, capacity, trustee arrangements, and conflicts with estate documents.

Portfolio example

A retirement account names a spouse as primary beneficiary and children as contingent beneficiaries.

How to interpret it

Beneficiary rights depend on the governing instrument and jurisdiction, not informal wishes.

Limitations and common misconceptions

Outdated designations, minors, incapacity, divorce, and simultaneous death can create disputes. Legal advice is often necessary.

Sources and further reading