Do You Need a Contingent Beneficiary?
Written by Bogutz and Gordon
Yes, you do. A contingent beneficiary is the person (or charity) who receives a bequest if the first choice (the primary beneficiary) can’t receive it or doesn’t want it. As this article explains, they’re used on life insurance, retirement accounts, and other assets. The article is incorrect in one respect: it says that if your primary is deceased or disclaims and there’s no contingent, anyone with an interest will fight for it in court. Although a probate proceeding may be needed, it will pass according to your Will or, if you don’t have one, state law, probably with no fighting.