contingent beneficiary

But one thing everyone should have is a contingent beneficiary, in case the first one dies before they do.

If that is done, those who were named as contingent beneficiaries get the account instead and can make withdrawals over their lifetimes.

But if husband and wife were killed in the same car or plane crash, for example, the proceeds would go to the children as contingent beneficiaries.

Upon the second person's death, the contingent beneficiaries or estate would receive a lump sum subject to immediate taxation.

His recommendation for people whose estates will clearly be under $600,000 is to make the estate the contingent beneficiary.

If a contingent beneficiary is not named, the default provision in the custodian-agreement applies.

It is quite common for people who have life insurance to name their spouse as primary beneficiary and their children as contingent beneficiaries.

There is no obligation to retain the contingent beneficiary designated by the IRA owner.

Today's Columns Many people would give college-age children control over large sums, albeit inadvertently, by making them contingent beneficiaries of life insurance policies.

The will named Yale the contingent beneficiary in the event the I.R.S. ruled against the institute.

If a spouse, for example, is the beneficiary of an I.R.A., a child can be made the contingent beneficiary.

If the primary beneficiary predeceases the IRA owner, the contingent beneficiary becomes the designated beneficiary.

However, if the primary beneficiary or beneficiaries are not alive or do not qualify under the restrictions, then the assets will probably pass to the contingent beneficiaries.

Other tips from Mr. Neumark: Be sure to name a contingent beneficiary, especially if the primary beneficiary is an older person who might die before the account holder.

Part of the insurance coverage will probably be for the spouse, and in that case making the estate the contingent beneficiary is probably preferable to encumbering the policy for the spouse.

The Goldbergs also amend the form when a beneficiary or contingent beneficiary is a minor, to provide that the money be transferred under the Uniform Transfer to Minors Act, with the custodian to be selected by the executor.

The simplest solution is to make one's estate the contingent beneficiary, he said, so that the executor can distribute the proceeds of insurance policies in accordance with the terms of the will, perhaps giving children half the assets at age 20 and half at age 30.

Ms. Robinson said that Mr. Bass had no direct role in Yale's decision to explore the situation but that the university had become aware that Mr. Poynter had named it a contingent beneficiary through news reports about the Bass acquisition effort.

Mr. Stone had received a booklet from the Vanguard Group, where he also had an account, on the subject of I.R.A. beneficiaries, and he liked one of its suggestions: Require that if your beneficiary does not survive you by 30 days, the money will go to your contingent beneficiary.