A person designated to receive assets from an account, trust, or insurance policy.
A beneficiary is a person (or entity) that you designate to receive money or assets from your will, trust, life insurance policy, retirement account, or other financial accounts. You name beneficiaries when opening these accounts or can update them later. Designating beneficiaries is important because assets left to named beneficiaries bypass probate and transfer directly to them outside your will. Beneficiary designations override your will, so keeping them current is critical—especially after major life events like marriage, divorce, or the birth of children. You can name primary beneficiaries and contingent beneficiaries (who receive the assets if the primary beneficiary predeceases you).