A named beneficiary refers to an individual identified by a written legal document who has the right to collect assets from a trust, insurance policy, pension plan account, or IRA.
There are different types of beneficiaries, such as primary beneficiaries who are first in line for benefits.
Notional beneficiaries refer to persons entitled to benefit from an account if the primary beneficiary relinquishes the asset, is deceased, or cannot be located.
The beneficiary can be property, as opposed to one person.
AB trust is a joint trust created by a married couple; after the death of one of the spouses, the trust is divided into the survivor’s part (Trust A) and the bypass part (Decedent’s Trust or Trust B).
The agency, if necessary, allows any person or entity to act on behalf of another person when the beneficiary cannot explicitly give permission to do so.
A generation skip trust (GST) is a legally binding arrangement whereby assets are passed on to the grantor’s grandchildren or anyone 37.5 years younger, bypassing the grantor’s next generation of children.
Annuity preservation trusts (GRAT) are estate planning instruments in which the grantor freezes assets in a trust from which they receive an annual income.
A Health Care Power of Attorney (HCPA) is a legal document that gives a specific person the right to speak with others and make decisions on your behalf regarding your health, treatment, and care.