I understand vested rights - not sure about contingent right
Total Comments: 2
Posted: Fri Apr 15, 2011 06:23 am Post Subject:
A contingent beneficiary receives the insurance benefits if the primary beneficiary dies before the maturity of the policy. So, if the insurance proceeds go to a trust, the contingent beneficiary will only achieve it in the absence of the primary beneficiary.
Posted: Fri Apr 15, 2011 11:54 am Post Subject:
Actually, Steven, if a trust is the life insurance beneficiary, there will, by definition, not be a contingent beneficiary of the life insurance. There will only be beneficiaries of the trust, as described in the trust document, and there's not really a discussion of primary or contingent beneficiaries inside the trust document. A person is either a beneficiary of the trust or not. There may be a pecking order among the beneficiaries -- which is akin to a discussion of contingent beneficiary rights.
Posted: Fri Apr 15, 2011 06:23 am Post Subject:
A contingent beneficiary receives the insurance benefits if the primary beneficiary dies before the maturity of the policy. So, if the insurance proceeds go to a trust, the contingent beneficiary will only achieve it in the absence of the primary beneficiary.
Posted: Fri Apr 15, 2011 11:54 am Post Subject:
Actually, Steven, if a trust is the life insurance beneficiary, there will, by definition, not be a contingent beneficiary of the life insurance. There will only be beneficiaries of the trust, as described in the trust document, and there's not really a discussion of primary or contingent beneficiaries inside the trust document. A person is either a beneficiary of the trust or not. There may be a pecking order among the beneficiaries -- which is akin to a discussion of contingent beneficiary rights.
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