An individual, institution, trustee, or estate receiving or becoming eligible to receive benefits under a will, an insurance policy, a retirement plan, annuity, trust, or other contract is known as a beneficiary. Usually a person who inherits under a will is a beneficiary.
Pursuant to Section 1-201 of Uniform Probate Code, a beneficiary relating to a trust beneficiary includes a person who has any present or future interest, and a person who has a vested or contingent interest. Additionally a beneficiary includes the owner of an interest by assignment or other transfer. Under a charitable trust, a beneficiary includes a person entitled to enforce the trust. Under a ‘beneficiary designation’, beneficiary refers to a beneficiary of an insurance or annuity policy, of an account with POD designation, of a security registered in beneficiary form, or of a pension, profit sharing, retirement, or similar benefit plan, or other nonprobate transfer at death. A Beneficiary designated in a governing means a grantee of a deed, a devisee, a trust beneficiary, a beneficiary of a beneficiary designation, a donee, appointee, or taker in default of a power of appointment. A Beneficiary designated in a governing includes a person in whose favor a power of attorney or a power held in any individual, fiduciary, or representative capacity is exercised.