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Simple English definitions for legal terms
final beneficiary
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A quick definition of final beneficiary:
Final beneficiary: The last person who gets something from a trust, life insurance policy, or other property when the original owner picked more than one person to receive it. This person gets it after the other people who were chosen before them have finished using it. For example, if someone leaves their house to their sister for her lifetime and then to her daughter, the daughter is the final beneficiary who gets the house after her mother has passed away.
A more thorough explanation:
Final beneficiary refers to the last person who will receive the benefits of a trust, life insurance policy, or other property when the original owner has assigned multiple beneficiaries. This person will receive the benefits after the previous beneficiaries' life estates or other period of control ends.
For example, if John creates a trust and assigns it to his wife, Jane, for her lifetime, and then to his children, Sarah and Michael, Sarah and Michael are the final beneficiaries. They will receive the benefits of the trust after Jane's death.
Another example is if a person has a life insurance policy and assigns it to their spouse for their lifetime, and then to their children, the children are the final beneficiaries. They will receive the benefits of the policy after their parent and spouse have passed away.
Overall, the final beneficiary is the last person in line to receive the benefits of a trust, life insurance policy, or other property. They will receive the benefits after the previous beneficiaries' period of control has ended.