An alternate beneficiary is an individual, institution, or organization that receives property through a will, insurance policy or trust when the first beneficiary refuses or is unable to take the property. In the case of insurance, the alternate beneficiary typically becomes the person who receives the proceeds from the insurance due to the primary beneficiary's death. In this case, the alternate beneficiary is also known as a secondary or contingent beneficiary.

When drafting a will or designating beneficiaries for any type of trust or insurance policy it is important to take into consideration who qualifies under law to be named as a beneficiary or alternate beneficiary. In most cases any organization or person may be designated as a beneficiary; however, there are some exceptions under law. These exceptions include:

• In some jurisdictions an individual who witnesses the signing of a will may be disqualified as a beneficiary or alternate beneficiary
• A lawyer who drafts a will
• An unincorporated association that is not able to hold property

When naming beneficiaries for a will, trust or insurance policy it is important to understand that a survivorship period typically applies. This is especially important in the case of will. A survivorship period requires that a beneficiary survive the testator for a specific period of time in order to receive the inheritance.

The purpose of a survivorship period is to ensure that property left in an estate is received by an alternate beneficiary instead of the initial beneficiary's heirs. The survivorship period also works to avoid unnecessary costs associated with the administration of a deceased beneficiary's estate. Survivorship periods typically last between 30 and 60 days following the death of the testator.

At Alternatebeneficiary.com, we are able to provide you with resources that will assist you in understanding the naming of beneficiaries so that you can be assured your property will be disposed of in a manner that is acceptable to you.