BENEFICIARY Flashcards
WHO CAN BE A BENEFICIARY?
A beneficiary can be a person, charity, business or trust. If the beneficiary is a person, they can be a relative, child, spouse, friend or anyone else you happen to know.
CAN YOU HAVE TWO PRIMARY BENEFICIARIES?
Yes, you can have more than one primary beneficiary. Also called co-beneficiaries, these multiple primary beneficiaries will share your death benefit equally or receive the sum based on a predetermined percentage.
HOW DO YOU DEVIDE BENEFICIARIES?
Per capita: Your three daughters will each get their 25% plus equal shares of the money that would have gone to your son.
Per stirpes: Your three daughters will each get their 25%. Your late son’s share will be divided between his two children.
PER STIRPES vs PER CAPITA
Per stirpes means that the beneficiary’s inheritance will be passed on to their next-in-line heir, or heirs.
Per capita means that the beneficiary’s inheritance would be divided evenly amongst any surviving beneficiaries.
SUCCESSOR GRANTEE-BENEFICIARY
The person or entity designated in a beneficiary deed to receive an interest in the property if the primary grantee-beneficiary does not survive the owner.
GRANTEE-BENEFICIARY
One or more persons or entities capable of holding title to real property designated in a beneficiary deed to receive an interest in real property upon the death of the owner.
INCOME BENEFICIARY
An income beneficiary is a person to whom the net income of a trust is or may be payable. Income beneficiaries are identified in the trust agreement of a trust. This person is only entitled to the trust income, not its principal. The principal will eventually be transferred to one or more remainder beneficiaries.
