We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Is a Secondary Beneficiary?

Malcolm Tatum
By
Updated: May 17, 2024
Views: 3,106
References
Share

A secondary beneficiary is a provision that is often found in many last wills and testaments. This type of beneficiary is identified as the individual or entity that will be awarded the assets in question should the primary beneficiary is unable to receive those assets. Sometimes referred to as a contingent beneficiary, the secondary beneficiary will usually inherit the assets named in the event that the primary beneficiary has passed away or is incapacitated in some manner that makes it impossible to assume control of the awarded assets.

The most typical arrangement for a secondary beneficiary is to identify this secondary individual in the event that the primary beneficiary should die before the grantor passes away. For example, if the asset involved is the proceeds from a life insurance plan, the insured party may designate a spouse as the primary beneficiary while also identifying a child as the contingent or secondary beneficiary. In this scenario, should the spouse predecease the insured party, then the insurance company will award the proceeds from the plan to the child named in the terms of the policy.

Choosing to identify a secondary beneficiary is often a good way to make sure that the assets of the deceased are distributed in a manner that is in keeping with the last wishes of the grantor. Adding this additional instruction to a will or insurance policy can also help to minimize the potential for contests of the terms, especially when the primary beneficiary is also deceased. Owing to the specific nature of this approach, there is less opportunity for others to lay a claim on assets simply because a primary beneficiary has also passed away. From this perspective, the arrangement can help make settling the affairs of the estate much easier and prevent prolonged delays in carrying out the wishes of the deceased.

In many instances, it may be possible to designate more than one secondary beneficiary. For example, if the primary beneficiary is a spouse, and the couple have two children, both those children may be named as contingent beneficiaries, sharing equally in the benefits from the life insurance plan or the assets named in the last will and testament. Attorneys who are well-versed in the current laws regarding last wills and testaments can advise clients on the best way to use the concept of a second beneficiary to make sure that all assets are awarded according to the wishes of the client.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Link to Sources
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.

Editors' Picks

Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
Share
https://www.wisegeek.net/what-is-a-secondary-beneficiary.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.