Legal Definitions - contingency beneficiary

A contingencybeneficiary is a person who is designated to receive a gift or benefit if the primary beneficiary is unable or unwilling to take it. For example, if a person names their spouse as the primary beneficiary of their life insurance policy, but also designates their child as the contingency beneficiary in case the spouse predeceases them or declines the benefit.

Another example of a contingency beneficiary is a person named in a will to receive a gift if the primary beneficiary is unable to take it. For instance, if a person leaves their estate to their spouse, but also designates their child as the contingency beneficiary in case the spouse dies before them.

Contingency beneficiaries are important because they ensure that the gift or benefit will still go to someone if the primary beneficiary cannot take it. This provides a backup plan and ensures that the person's wishes are still carried out.