beneficiary

noun
ben·​e·​fi·​cia·​ry | \ ˌbe-nə-ˈfi-shē-ˌer-ē How to pronounce beneficiary (audio) , -e-rē, -ˈfi-sh(ə-)rē How to pronounce beneficiary (audio) \
plural beneficiaries

Definition of beneficiary

1 : a person or thing that receives help or an advantage from something : one that benefits from something the main beneficiaries of these economic reforms
2a law : the person designated to receive the income of an estate that is subject to a trust (see trust entry 1 sense 3a)
b : the person named (as in an insurance policy) to receive proceeds or benefits (see benefit entry 1 sense 2b) named her husband as the sole beneficiary of her life insurance policy

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Did You Know?

Beneficiary is often used in connection with life insurance, but it shows up in many other contexts as well. A college may be the beneficiary of a private donation. Your uncle's will may make a church his sole beneficiary, in which case all his money and property will go to it when he dies. A "third-party beneficiary" of a contract is a person (often a child) who the people signing the contract (which is usually an insurance policy or an employee-benefit plan) want to benefit from it. In a more general way, a small business may be a beneficiary of changes to the tax code, or a restaurant may be the beneficiary when the one across the street closes down and its whole lunch crowd starts coming in.

Examples of beneficiary in a Sentence

The college was a beneficiary of the private grant.
Recent Examples on the Web This experience as a wary beneficiary of affirmative action echoes in Justice Thomas’s dissent from a 2003 ruling, upholding the University of Michigan law school’s race-conscious admissions policy. The Economist, "Radical justice Will Clarence Thomas stick it out for a 30th year on the court?," 27 June 2020 Young guys on the cusp of the big leagues such as Hernandez, Hearn and outfielder Leody Taveras could be the beneficiary of quick changes in team approach. Dallas News, "What’s next for MLB? Evan Grant answers questions about a season unlike any other and what it means for the Rangers," 23 June 2020 The hospital has served as title beneficiary of the Akron Children's Hospital Akron Marathon Race Series since 2016. Marc Bona, cleveland, "Akron Marathon revamped with virtual format," 16 June 2020 If your mother was the beneficiary of any of your father’s financial or retirement accounts, some sort of strategy needs to be eventually developed for transferring them to her name. Nathan Bachrach And Amy Wagner, Cincinnati.com, "Simply Money: Immediate financial steps a widow or widower should take," 16 June 2020 The biggest beneficiary of this new restoration fund is its titular agency, the National Park Service, which will receive 70 percent of the pie each year. Natalie Krebs, Outdoor Life, "The Senate Is About to Pass a Bill That Will (Finally) Fund Public Lands and Ease Maintenance Backlogs in National Parks," 9 June 2020 Indeed, our trusts — which own almost our entire estate — cannot have the spouse, child, parent or in-law of a beneficiary as a trustee. Liz Weston, oregonlive, "Liz Weston: Think carefully when designating trustees, dividing estates," 13 June 2020 The main beneficiary of its offering will be its creditors. Stephen Gandel, CBS News, "Bankrupt Hertz is one of the market's hottest stocks. That's a bad sign," 12 June 2020 Bribery in the country, which lies in the Caucasus and shares a border with Russia, was rampant, and its police force, which was both a beneficiary and an enforcer of the system, was widely distrusted. Yasmeen Serhan, The Atlantic, "What the World Could Teach America About Policing," 10 June 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'beneficiary.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of beneficiary

1662, in the meaning defined at sense 1

History and Etymology for beneficiary

see benefice

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Time Traveler for beneficiary

Time Traveler

The first known use of beneficiary was in 1662

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Statistics for beneficiary

Last Updated

28 Jun 2020

Cite this Entry

“Beneficiary.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/beneficiary. Accessed 5 Jul. 2020.

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More Definitions for beneficiary

beneficiary

noun

Financial Definition of beneficiary

What It Is

A beneficiary is any person or organization that receives assets from a person after that person’s death.

How It Works

A will is a legal document that indicates how a person wants his or her estate (money and property) to be distributed after death. A will may also describe any wishes for funeral and burial arrangements, and it may designate guardians for minor children.

When the testator (the person who created the will) dies, the executor, who is named in the will, administers the distribution of the estate to the beneficiaries. An executor administers the distribution of an estate to beneficiaries.

Wills aren’t the only things that have beneficiaries. Insurance policies also often have beneficiaries (particularly life insurance and annuities).

It is important to note that a testator or insured person can change a beneficiary at almost any time, for any reason, and should keep the original copy of the related documents in a safe place. A copy should also be given to the executor.

Why It Matters

Naming a beneficiary of your assets is part of the process of estate planning. However, court procedures, called probate, are often required to pass assets from a deceased person to beneficiaries, because the testator is no longer around to sign deeds and other documents necessary to transfer the assets.

Without naming beneficiaries to your financial assets, relatives can spend a lifetime (and their life savings) battling over your assets, friends and nonblood relatives can get entirely ignored, and former spouses could bequeath your assets to their children from other marriages. This may be what you intended, but without an adequate estate plan, you can never be sure. It can be intimidating, but it is a necessary step to ensuring that your assets end up where you want them, without the interference of the Internal Revenue Service or third parties.

Source: Investing Answers

beneficiary

noun
How to pronounce beneficiary (audio) How to pronounce beneficiary (audio)

English Language Learners Definition of beneficiary

: a person, organization, etc., that is helped by something : someone or something that benefits from something
: a person, organization, etc., that receives money or property when someone dies

beneficiary

noun
ben·​e·​fi·​cia·​ry | \ ˌbe-nə-ˈfi-shē-ˌer-ē How to pronounce beneficiary (audio) \
plural beneficiaries

Kids Definition of beneficiary

: a person who benefits or will benefit from something

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beneficiary

noun
ben·​e·​fi·​cia·​ry | \ ˌbe-nə-ˈfi-shē-ˌer-ē, -ˈfi-shə-rē How to pronounce beneficiary (audio) \
plural beneficiaries

Legal Definition of beneficiary

: a person or entity (as a charity or estate) that receives a benefit from something (as a will or other instrument or legal agreement): as
a : the person or entity named or otherwise entitled to receive the principal or income or both from a trust — compare settlor, trustee
contingent beneficiary
: a beneficiary that may receive proceeds from a trust depending on the occurrence of a specified event (as the death of another beneficiary)
income beneficiary
: a beneficiary that according to the provisions of a trust is to receive income but not the principal of the trust

Note: A trust may provide for income to be paid to someone (as a spouse) for his or her lifetime and then for payment of the principal to another person. A trustee is sometimes allowed to distribute some of the principal of the trust to an income beneficiary when necessary for the support of the beneficiary if support of the beneficiary was the purpose of the trust.

b : the person or entity named by the insured of a life insurance policy to receive the proceeds upon the insured's death
contingent beneficiary
: a beneficiary named to receive the insurance proceeds if the primary beneficiary has died

called also secondary beneficiary

primary beneficiary \ ˈprī-​ˌmer-​ē-​, -​mə-​rē-​ \
: a beneficiary named to receive the insurance proceeds before any other
secondary beneficiary \ ˈsek-​ən-​ˌder-​ē-​ \
: contingent beneficiary in this entry
c : a person or entity entitled under a letter of credit to demand payment from the issuer of the letter
d : a person or entity that benefits from a promise, agreement, or contract especially : third-party beneficiary in this entry the contractual beneficiaries…are mortgagees and investors Key Pac. Mortg. Inc. v. Industrial Indem. Co., 845 P.2d 1087 (1993)
creditor beneficiary
: a direct beneficiary whom the party paying for the other party's performance intends to benefit as payment for a debt or obligation — compare donee beneficiary in this entry
direct beneficiary
: a third-party beneficiary to a contract whom the parties to the contract intended to benefit — compare incidental beneficiary in this entry
donee beneficiary
: a direct beneficiary whom the party paying for the other party's performance intends to benefit as a gift or donation
incidental beneficiary
: a third-party beneficiary to a contract whom the parties to the contract did not intend to benefit — compare direct beneficiary in this entry
third-party beneficiary
: a person or entity that is not a party to but has rights under a contract made by two other parties

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