Discretionary beneficiaries are beneficiaries, meaning their names are written into some trust, life insurance policy, or retirement plan of someone else. Beneficiaries get paid monaaayyyy...but discretionary beneficiaries have to wait. Maybe they’re four (too young), or never have more than five bucks to their name (bad with money).
Legally, discretionary beneficiaries should see some kind of a payout eventually, but trustees can decide the terms, making things potentially tricky for the discretionary beneficiary. It helps if the grantor of the trust (the dead person) wrote a letter with some deets so that the discretionary beneficiary doesn’t get left out in the cold.
Discretionary beneficiaries are often people, but they can also be organizations, like charities, who can collect the money without owing income taxes on the amount. Sweeeeeet.
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Finance: What is a Beneficiary?25 Views
Finance a la shmoop.. what is a beneficiary? well in Latin, bene is
good so this is like a good place to catch fish...well close not [Old man fishing in the ocean]
really but being a beneficiary is good it means you get stuff like if you are
the beneficiary of weird uncle Al's will then you get his odd collection of hair
balls shaped like US presidents and thirty two thousand two hundred sixty [Uncle Al's will appears]
$9.32... in essence then you are the beneficiary of his will you are the one
set up to benefit by the death of someone who wanted to favor you with
their assets when they had you know passed on to the great beyond where hair [Uncle Al with white wings in heaven]
balls will fall....
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