A contingent beneficiary is someone who is next in line to receive assets such as a life insurance policy, retirement plan, or annuity. While spouses are typically designated as primary beneficiaries, in the event of their simultaneous death, children or trusts acting on behalf of minor children may become contingent beneficiaries. Unlike assets passing through a will, contingent beneficiaries receive their share directly and without going through probate court. However, it is important for account holders to regularly review and update their beneficiary arrangements to ensure their wishes are accurately reflected.
