What is a tertiary beneficiary?

A tertiary beneficiary is a third-level recipient of assets or benefits from a trust, insurance policy, or will. They are typically named in the event that the primary and secondary beneficiaries are unable to receive or do not want the assets. Tertiary beneficiaries are often less common and may be further removed from the original benefactor.

It is important to clearly define the role and rights of tertiary beneficiaries in legal documents to avoid any confusion or disputes. They may have limited rights compared to primary or secondary beneficiaries, depending on the specific terms of the trust, policy, or will.

Tertiary beneficiaries may receive a portion of the assets or benefits after the primary and secondary beneficiaries have been satisfied, but this can vary depending on the specific circumstances and the preferences of the benefactor. It is recommended to consult with a legal professional when including tertiary beneficiaries in estate planning documents to ensure that their interests are properly protected.