Definition of a Life Beneficiary

A life beneficiary is a person who receives some form of tangible benefit from a will or a trust. This is a detailed form of estate planning that can be used to ensure that loved ones are taken care of when you pass away. There are benefits that are passed to a life beneficiary that can be in the form of money, property or some other form of asset.

Life Beneficiary Examples

A common form of estate planning involves naming one's spouse as a life beneficiary. For example, a husband could leave his house to his wife by naming her as the life beneficiary. In this scenario, the wife gets to keep the house for the rest of her life. When the wife passes away, the house goes to a third party. This ensures that the wife will have a home to stay in for as long as she lives.

Another common life beneficiary is a person who receives a monthly stipend, or payment, from the decedent's estate. The beneficiary receives a lump sum of money every month for the rest of their life. Life beneficiary forms and regulations can vary from state to state so it is important to consult with your attorney for more details.

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