**Alternate Beneficiary** (noun) — A person or entity named in a will to receive a gift or benefit if the primary beneficiary predeceases the testator, disclaims the gift, or is otherwise unable or unwilling to take.
Life is unpredictable. Your first-choice beneficiary might die before you, or they might disclaim (refuse) a gift. An alternate beneficiary is your backup plan—the person or organization who receives the gift if your primary choice can't or won't.
This is sometimes called a substitute beneficiary or contingent beneficiary. It's simple forward planning that prevents unintended consequences.
⏱ When you'll encounter this term
Without naming alternates, a failed gift typically falls into your residuary estate (the leftover pot) and gets distributed according to those provisions. This might not align with your wishes.
For example, if you leave your car to your brother but he dies before you, you might want it to go to his children rather than into the general residue. Naming alternates ensures your intent is clear. Many people name alternates for all significant gifts, particularly when leaving assets to elderly relatives or friends.
**Related terms:** [Beneficiary](/dictionary/beneficiary), [Contingent Beneficiary](/dictionary/contingent-beneficiary), Primary Beneficiary, [Lapse](/dictionary/lapsed-gift)
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"Dad named Mum as primary beneficiary and me as alternate beneficiary, so I'd inherit if Mum died first."