Beneficiaries who are eligible to receive distributions if the primary beneficiary has predeceased are called?

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Multiple Choice

Beneficiaries who are eligible to receive distributions if the primary beneficiary has predeceased are called?

Explanation:
In estate planning, the person designated to receive assets if the primary beneficiary cannot take is called a contingent beneficiary. If the primary beneficiary predeceases the distribution, the assets go to this secondary beneficiary who is next in line. The primary beneficiary is the first recipient, not the fallback. Designations like TOD (transfer on death) and POD (payable on death) refer to specific asset-transfer arrangements and are not the general term for the next beneficiary when the primary cannot take.

In estate planning, the person designated to receive assets if the primary beneficiary cannot take is called a contingent beneficiary. If the primary beneficiary predeceases the distribution, the assets go to this secondary beneficiary who is next in line. The primary beneficiary is the first recipient, not the fallback. Designations like TOD (transfer on death) and POD (payable on death) refer to specific asset-transfer arrangements and are not the general term for the next beneficiary when the primary cannot take.

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