one who will receive the benefit (or proceeds) of an estate/trust/insurance/etc – but only if some unintended event/circumstance occurs.
EXAMPLE:
John establishes a trust to take effect at his death. He names his wife as beneficiary. The trust instrument also provides that if his wife remarries, then John’s son & daughter become the beneficiaries (and his wife loses eligibility). Since there is no assurance that John’s wife will ever remarry, his son & daughter are considered contingent beneficiaries.
