Definition of 'Beneficiary'
There are two main types of beneficiaries: primary beneficiaries and contingent beneficiaries. A primary beneficiary is the person or entity that is first in line to receive the benefit. If the primary beneficiary dies before the benefit is paid out, the contingent beneficiary will receive the benefit instead.
Beneficiaries can be individuals, trusts, or other entities. They can also be named as a percentage of the total benefit, or they can receive a specific dollar amount.
It is important to understand the different types of beneficiaries and how they are named in a legal document. This will help to ensure that the intended beneficiaries receive the benefits that they are entitled to.
Here are some additional details about beneficiaries:
* Beneficiaries can be changed at any time by the person who created the legal document. However, it is important to make sure that the changes are made in a way that is legally binding.
* Beneficiaries can also be revoked, which means that they will no longer receive the benefit. This can be done for a variety of reasons, such as if the beneficiary has died or if the person who created the legal document no longer wants them to receive the benefit.
* Beneficiaries should be aware of their rights and responsibilities. They should understand what benefits they are entitled to and how they can claim them. They should also be aware of any restrictions or conditions that may apply to the benefit.
If you have any questions about beneficiaries, you should consult with an attorney.
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