Who should be contingent beneficiary?
Asked by: Erika Hegmann | Last update: January 25, 2026Score: 5/5 (4 votes)
What two conditions must be in place for a contingent beneficiary to receive proceeds?
If the primary beneficiary dies: The contingent beneficiary is next in line to receive the payout. If the primary beneficiary can't be located: The contingent beneficiary would receive the benefit if the primary can't be found after many efforts to locate them.
Should I list my kids as contingent beneficiaries?
Do Not List Minor Children as Account Beneficiaries. In the vast majority of states, minors may not inherit money or sign legal documents. Therefore, when you name a child, the payment may only be made to a court-appointed guardian. Appointing a guardian takes time and will delay any payments to the children.
What percentage should a contingent beneficiary be?
The percentage shares for your primary beneficiaries must total 100%. The percentage shares for your secondary (contingent) beneficiaries must total 100%. Or you may check equal (Eq) to have the shares divided equally to the beneficiaries specified.
What happens if there is no contingent beneficiary?
What happens if I don't have a contingent beneficiary? If your primary beneficiaries are deceased and you have no contingent beneficiaries, your death benefit will be paid to your estate instead of to people or organizations you've selected.
What Are Contingent Beneficiaries?
Who should I name as contingent beneficiary?
Contingent beneficiaries are second in line to inherit your assets. Also known as secondary beneficiaries, contingent beneficiaries are often children, other family members, or philanthropic organizations. You can name multiple contingent beneficiaries and divide your estate among them.
What are the rules for contingent beneficiaries?
A contingent beneficiary inherits only if the primary beneficiary is deceased, unable to be located, or refuses the inheritance when the proceeds are paid out. Multiple contingent beneficiaries can be listed, with each contingent beneficiary due a percentage of the total amount.
Can the same person be a primary and contingent beneficiary?
Can the Same Person be My Primary and Contingent Beneficiary? Naming the same person as both a primary and a contingent beneficiary is a common Estate Planning mistake. Since the contingent beneficiary is a back up, it's important to not name the same person in both roles.
Do banks allow contingent beneficiaries?
Thankfully, you can name multiple beneficiaries to a single account. One way this works would be naming both a primary and a contingent beneficiary, in case something should happen to the primary.
What would be an advantage to naming a contingent beneficiary?
The benefit of naming one or more contingent beneficiaries is that you choose who receives your life insurance benefit even when things don't go quite as planned. For example, if you and your primary beneficiary die in a car accident, your contingent beneficiary or beneficiaries receive your life insurance proceeds.
Who should never be named as a beneficiary?
Estranged relatives or former spouses – Family relationships can be complicated, so think carefully if an estranged relative or ex-spouse really aligns with your wishes. Pets – Pets can't legally own property, so naming them directly as beneficiaries is problematic. Consider a pet trust instead.
Should your child be your executor?
If your oldest isn't financially savvy, organized, responsible, fair and living close by, you could be unduly burdening them – and your other children – through this appointment. Ultimately, it's better to pick “the best person for the job” as your executor, rather than rely on custom.
Who is the best person to name as a beneficiary?
A lot of people name a close relative—like a spouse, brother or sister, or child—as a beneficiary. You can also choose a more distant relative or a friend. If you want to designate a friend as your beneficiary, be sure to check with your insurance company or directly with your state.
Should my child be primary or contingent beneficiary?
Do you have a contingent beneficiary in mind if you decide to name your child/children as your primary beneficiaries? Remember that you always want to name contingent beneficiaries so your estate isn't tied up in probate if your primary beneficiary isn't able to receive assets for any reason.
Can you name a contingent beneficiary on a TFSA?
You can name anyone as a beneficiary, such as your spouse/partner or a dependent child or grandchild. You can name multiple beneficiaries and allot percentages of your assets to each. You can name a contingent beneficiary (or a person next in line) to receive the funds in your account if the primary beneficiary can't.
Do contingent beneficiaries have a right to accounting?
Remainder and/or contingent beneficiaries (beneficiaries who are not entitled to assets until a specific event happens, such as the death(s) of the original beneficiaries) have a right to information, but not necessarily a right to an accounting.
Can a beneficiary withdraw money from a bank account?
Bank account beneficiary rules usually allow payable-on-death beneficiaries to withdraw the entirety of a decedent's bank account immediately following their death, so long as they present the bank with the proper documentation to prove the account owner died and to confirm their own identity.
What happens if you don't have a contingent beneficiary?
If the primary beneficiary is dead, can't be found, or refuses the asset, and there is no contingent beneficiary, then the asset goes into your general estate and will need to go through probate. If you have a will, the asset will go to those designated in the will.
Can a contingent beneficiary be a friend?
You can name almost anyone as your contingent beneficiary.
However, as in the case of primary beneficiaries, you cannot name children under the age of 18 or pets.
Can you have contingent beneficiaries on bank accounts?
Contingent Beneficiaries: Consider naming contingent or secondary beneficiaries in case your primary beneficiary predeceases you. This ensures the funds still go where you want them if something happens to the primary person.
Do contingent beneficiaries need to be notified?
App. 5th 655, and held that beneficiaries who will only receive an inheritance upon the happening of an event (i.e., contingent beneficiaries) have a property interest in an inheritance and are therefore entitled to notice under constitutional due process requirements.
Can a spouse override a beneficiary?
So the answer is no, unless the beneficiary is changed, that is who will receive the money upon the account owner's death, regardless of a divorce. In many divorces, savings accounts and retirement accounts are divided as part of the separation agreement.
What is the contingent rule?
Contingent means that an event may or may not occur in the future, depending on the fulfillment of some condition that is uncertain. This term is often used in contracts where the event will not take effect until the specified condition occurs.
Can a beneficiary sue another beneficiary?
Estate beneficiaries who do bring an action against another beneficiary, heir, personal representative or third party can seek to have the alleged offender pay for the property or return it, and potentially seek punitive damages if the harm to property was substantial.
Can an RRSP have a contingent beneficiary?
If you choose a person, sometimes the financial institution also allows you to pick an alternate or contingent beneficiary(ies) in case the first person you choose dies before you. You may also choose more than one person and pick the portion that each person may have. Typically, you would name adult(s).