what is a named beneficiary 
a named beneficiary is an individual decreed by a written legal document who is entitled to collect assets from a trust insurance policy pension plan account ira or any other financial instrument if a property has multiple named beneficiaries they share in the proceeds at the time of disposition in some cases such as an annuity policy the policyholder and the named beneficiary may be the same person beneficiary designations can be complex for example by naming a specific beneficiary in a life insurance policy the proceeds will not be subject to the stipulations of will nor will they be affected by probate proceedings types of named beneficiarythere are several types of beneficiaries in late december 2019 president trump signed the setting every community up for retirement enhancement secure act the act encourages employers to offer annuities as investment options within 401 k plans 1it is important to note that a named beneficiary does not necessarily have to be an individual for example the named beneficiary of an insurance policy can be the estate of the deceased in which case the actual beneficiaries will be designated in the will a beneficiary differs from an heir the first is entitled to collect property by decree of a will while the latter is someone entitled to assets via intestate succession risks related to named beneficiariesit s essential for grantors to formally name the beneficiary or beneficiaries in a full estate planning process furthermore many financial advisors recommend reviewing and updating all beneficiary designations every few years particularly after a major life event such as a divorce or death of a loved one 