What happens to a contingent beneficiary in probate?

What happens to a contingent beneficiary in probate?

A contingent beneficiary is second in line to inherit from you if your primary or first beneficiary is unwilling or unable to do so. Retirement accounts will commonly revert to your probate estate if you fail to name a contingent beneficiary and your primary beneficiary predeceases you.

Do you have to be a person to become a contingent beneficiary?

However, your beneficiary does not need to be a person. You could also name your favorite charity or nonprofit organization as a primary or contingent beneficiary, though there are additional tax implications you should consider with this option.

What’s the difference between primary and contingent beneficiaries?

Contingent Beneficiaries vs. Primary Beneficiaries Think of contingent and primary beneficiaries as individuals standing in line. The primary beneficiary is at the head of the line. The contingent beneficiary is behind that person and can only move forward if the primary beneficiary steps aside.

What happens if a beneficiary dies before the testator?

What happens if a beneficiary dies after the testator but before they inherited? When a beneficiary dies after the testator but before the completion and distribution of the estate the deceased’s beneficiary’s estate will still inherit their share.

Can a contingent beneficiary of a will receive nothing?

For a contingent beneficiary of a will, virtually any conditions may be in place; it depends entirely on the person drafting the will. A contingent beneficiary will receive nothing if the primary beneficiary accepts an inheritance.

What happens if my primary beneficiary dies before me?

A contingent beneficiary is a backup, secondary beneficiary who receives an account or piece of property if the first beneficiary, known as the primary beneficiary, dies before you do.

What’s the difference between a primary and contingent beneficiary?

Despite the term “primary,” you may name more than one such beneficiary and designate how the assets will be divided among them. A contingent beneficiary, on the other hand, is the second in line to inherit your assets.

When to update contingent beneficiary in life insurance?

Contingent beneficiaries need to be reviewed and updated after major life changes such as marriage, divorce, birth or death. For example, after Bob and Sue divorce, he updates his life insurance policy so his daughter Samantha is the primary beneficiary and his son Jackson is the contingent beneficiary.