Alternate Beneficiary

Alternate beneficiary is a person or organization that which receives property through a will, trust or insurance policy in case the primary beneficiary is unable or refuses to accept said property.

For instance, uncle Jim leaves his stamp collection to his on Jam and names Stamps for Kids as the alternate beneficary. After uncle Jim dies, Jam refuses to accept the stamp collection as he has no interest in stamps whatsoever and believes that Stamps for Kids can make a better use of his father's collection. The stamp collection will pass to the alternate beneficiary, i.e., Stamps for Kids.

When it comes to insurance law, the alternate beneficiary is called the secondary or contingent beneficiary and is usually the person who receives the insurance proceeds because the primary beneficiary dies.

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