What Is a Beneficiary?

By Benjamin Locke – Updated May 30, 2025 at 11:07 AM

Key Points

Beneficiaries receive assets without probate when named in trusts or insurance.
Immediate designation of beneficiaries ensures asset transfer according to wishes.
Types of beneficiaries vary, impacting how and to whom assets are distributed.

Everyone loves to benefit from something. Being a beneficiary on a will or trust could entitle you to anything from a lump sum of money to a beautiful piece of real estate on Cape Cod. But what exactly are beneficiaries?

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Last will and testament on parchment written with quill pen. — Image source: Getty Images.

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Revocable Beneficiaries	Can be changed or removed by a life insurance policyholder or trust fund grantor at any time.
Irrevocable Beneficiaries	Cannot be changed or removed without consent after designation.
Primary Beneficiaries	First to receive benefits; assets go to contingent beneficiaries if they predecease the owner.
Contingent Beneficiaries	Receive assets if no primary beneficiaries are alive and able to receive assets.
Per stirpes Beneficiaries	Inheritance passes to the named beneficiary's children if the named beneficiary dies before the owner.
Per Capita Beneficiaries	Benefits are equally redistributed among remaining beneficiaries if one dies before the owner.