BENEFICIARY

beneficiary (ben-<<schwa>>-fish-ee-er-ee or ben-<<schwa>>-fish-<<schwa>>-ree), n.1. A person for whose benefit property is held in trust; esp., one designated to benefit from an appointment, disposition, or assignment (as in a will, insurance policy, etc.), or to receive something as a result of a legal arrangement or instrument. 2. A person to whom another is in a fiduciary relation, whether the relation is one of agency, guardianship, or trust. 3. A person who is initially entitled to enforce a promise, whether that person is the promisee or a third party. — beneficiary,adj.

contingent beneficiary. 1. A person designated by the testator to receive a gift if the primary beneficiary is unable or unwilling to take the gift. — Also termed contingency beneficiary. 2. A person designated in a life-insurance policy to receive the proceeds if the primary beneficiary is unable to do so. — Also termed secondary beneficiary. [Cases: Insurance  3483, 3485. C.J.S.

Insurance § 1428.]

creditor beneficiary.A third-party beneficiary of a contract who is owed a debt that is to be satisfied by another party’s performance under the contract. [Cases: Contracts  187(1). C.J.S.

Contracts § 602.] direct beneficiary.See intended beneficiary.

donee beneficiary.A third-party beneficiary who is intended to receive the benefit of the

contract’s performance as a gift from the promisee.

expectant beneficiary.See expectant distributee under DISTRIBUTEE.

favored beneficiary.A beneficiary of a will who receives disproportionate amounts of the testator’s property as compared with others having equal claims to the property, raising the specter of the beneficiary’s undue influence over the testator. See UNDUE INFLUENCE. [Cases: Wills

164–166. C.J.S. Wills §§ 367–375.]

incidental beneficiary. 1. A third-party beneficiary who is not intended to benefit from a contract and thus does not acquire rights under the contract. Cf. intended beneficiary. [Cases: Contracts  187(1). C.J.S. Contracts § 602.] 2. A person to whom a settlor of a trust does not manifest an intention to give a beneficial interest but who may benefit from the trust’s performance.

income beneficiary.A person entitled to income from property; esp., a person entitled to

receive trust income. [Cases: Trusts  273. C.J.S. Trover and Conversion §§ 542–550.]

intended beneficiary.A third-party beneficiary who is intended to benefit from a contract and thus acquires rights under the contract as well as the ability to enforce the contract once those

 

rights have vested. — Also termed direct beneficiary. Cf. incidental beneficiary. [Cases: Contracts

187(1). C.J.S. Contracts § 602.]

life beneficiary.One who receives payments or other benefits from a trust for life. [Cases:

Trusts  140. C.J.S. Trover and Conversion §§ 254–257.]

primary beneficiary.The person designated in a life-insurance policy to receive the proceeds

when the insured dies.

secondary beneficiary.See contingent beneficiary (2).

third-party beneficiary.A person who, though not a party to a contract, stands to benefit from the contract’s performance. • For example, if Ann and Bob agree to a contract under which Bob will render some performance to Chris, then Chris is a third-party beneficiary. [Cases: Contracts

187(1). C.J.S. Contracts § 602.]

unborn beneficiary.A person who, though not yet born, is named in a general way as sharing in an estate or gift. • An example might be a grandchild not yet born when a grandparent specifies, in a will, that Blackacre is to go to “my grandchildren.”[Blacks Law 8th]