Beneficiary - 401k Retirement Glossary

A beneficiary is a person who will inherit the annuity payments or the wealth of a dead person based on his will or financial covenant. Other items that can be distributed to a beneficiary include property, bank account balances, 401k savings and more.

This beneficiary can be a:

- spouse of the dead
- child of the dead
- charitable organization
- friend, etc

The person who is giving out his wealth is known as the benefactor.

Examples of Beneficiaries

Beneficiary of a Life Insurance Policy = Person who receives the annuity payments from the dead person's will after his death

-Beneficiary of a Trust = Person with equitable ownership of the trust's assets (also known as the trustee).