Breaking Down Beneficiaries
You may have heard the term beneficiary tossed around a few times but you may not know what it really means.
Well a beneficiary, to put it in simple terms, means anybody who gains advantage and or profits from something. In the financial world, a beneficiary typically refers to someone who is eligible to receive distributions from a trust, will or life insurance policy.
Beneficiaries are either named specifically in these documents or they have met the stipulations that make them eligible for whatever distribution is specified.
So, who can be named a beneficiary? Well, it’s really any person or entity that is doing the naming of the beneficiary. The one distributing the funds or the benefactor can put various stipulations on disbursement of funds. But don’t forget, there can be tax consequences to the beneficiary as well. For more about beneficiaries please check out the video above and get all you need to know!