Beneficiary
A person or entity designated to receive benefits, money, or property from a legal arrangement such as a will, trust, or insurance policy.
What is Beneficiary?
A beneficiary is an individual or entity entitled to receive benefits, assets, or proceeds under a will, trust, insurance policy, or other legal arrangement. They hold legal rights to the property or payment designated in the document.
Why It Matters?
Identifying beneficiaries ensures assets or funds are properly distributed according to the law or contract.
Example
A child named in a parent’s life insurance policy is the beneficiary and will receive the policy proceeds upon the parent’s death.
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