A more thorough explanation:

A contingent beneficiary is a person who is named as an alternative recipient of benefits in a will or trust. They only receive the benefits if certain conditions are met, such as the primary beneficiary being unable to receive the benefits.

For example, in an insurance policy, the primary beneficiary may be the spouse of the insured, but if the spouse predeceases the insured, the contingent beneficiary, such as a child, would receive the benefits instead.

If a trustee breaches their duties, a contingent beneficiary may have the right to sue the trustee. In the case of Giagnorio v. Trust, the court held that a contingent beneficiary had the same rights as a beneficiary with vested interest to sue a trustee who breached their fiduciary duties.

In Texas, if a beneficiary forfeits their interest in a life insurance policy, the contingent beneficiary named by the insured can receive the proceeds. However, if the contingent beneficiary forfeits their interest, they are not eligible for the benefit.

When there is no contingent beneficiary named, the proceeds of a policy or trust may go to the nearest relative of the insured or the estate of the deceased.

Overall, a contingent beneficiary is an important consideration when creating a will or trust, as they provide a backup plan for the distribution of assets in case the primary beneficiary is unable to receive them.