Can I list a friend as a beneficiary?

Asked by: Prof. Alexandre Stehr  |  Last update: June 21, 2025
Score: 4.1/5 (29 votes)

A lot of people name a close relative—like a spouse, brother or sister, or child—as a beneficiary. You can also choose a more distant relative or a friend. If you want to designate a friend as your beneficiary, be sure to check with your insurance company or directly with your state.

Can you put friends as beneficiaries?

Yes. You may name anyone as the beneficiary. Some policies may allow you to prohibit distributions to some people should your beneficiary predecease you.

Can you list someone as a beneficiary?

You can name anyone (except for your employer in a group term life policy) as the beneficiary of your life insurance policy. Many people choose a family member or child, but that's not required. You can also name a charity or a trust.

Can a person be a beneficiary?

Your beneficiary can be a person, a charity, a trust, or your estate. Almost any person can be named as a beneficiary, although your state of residence or the provider of your benefits may restrict who you can name as a beneficiary. Make sure you research your state's laws before naming your beneficiary.

Who can I claim as a beneficiary?

Eligible Designated Beneficiary
  • Surviving spouse.
  • Minor child (individual under 18 years of age) of the deceased accountholder.
  • A disabled individual.
  • A chronically ill Individual.
  • Any individual not more than 10 years younger than the decedent.

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Who is an eligible beneficiary?

Any of the following individuals are considered an eligible designated beneficiary (EDB): a surviving spouse, a disabled or chronically ill individual, an individual who is not more than 10 years younger than the IRA owner, or a child of the IRA owner who has not reached the age of majority.

Who are the qualified beneficiaries?

A qualified beneficiary is a limited subset of all trust beneficiaries. In effect, the class is limited to living persons who are (a) current beneficiaries, (b) intermediate beneficiaries, and (c) first line remainder beneficiaries, whether vested or contingent.

Who should not be named beneficiary?

Estranged relatives or former spouses – Family relationships can be complicated, so think carefully if an estranged relative or ex-spouse really aligns with your wishes. Pets – Pets can't legally own property, so naming them directly as beneficiaries is problematic.

Can my boyfriend be my beneficiary?

You can name anyone as your beneficiary, regardless of your relationship. However, if you name a minor, the life insurance company will typically place the benefit in a Trust until that minor turns 18 years of age.

Who can be the beneficiary of a single person?

For single individuals, it is common to choose their parents or siblings. You may also want to consider any other dependents, such as children, who may need financial support after your passing. If you have a business partner or charity that you support, you may want to designate them as your beneficiary.

Can you name someone other than your spouse as beneficiary?

If you are not married or are divorced (and not remarried), you can choose to name an adult child, a sibling, a partner, family member or a friend. If you are married, you may need your spouse's consent if you intend to name someone other than your spouse as a beneficiary for a retirement account.

Do beneficiaries have to be people?

A beneficiary can be any individual that the deceased person has chosen to nominate in their will. They are normally family members like children and grandchildren, and can also often be friends. Other beneficiaries may be entities like charities and organisations.

What happens if the beneficiary name is wrong?

If the beneficiary name is incorrect, your transfer will not go through and the money will be returned to the original bank from where it was transferred.

How do I list someone as a beneficiary?

How to name a beneficiary on your life insurance policy
  1. Fill out the beneficiary designation form supplied by your insurance provider. ...
  2. Set your beneficiary designations directly through an online portal on your provider's website.
  3. Call your provider and designate your beneficiaries over the phone.

Can a stranger be a beneficiary?

A number of situations exist in which a non-family member may be designated as beneficiary on a life insurance policy. Examples other than family members who could be named as a beneficiary include: Your favorite charitable organization. A lifelong friend.

Should I tell my friends I inherited money?

It does mean that you might not feel comfortable sharing initially how much wealth you have, but it doesn't mean that you can't talk about anything related to your inheritance. You don't have to hide the fact that you're getting an inheritance if even if you aren't totally forthright about how much it is.

Can friends be beneficiaries?

When most people think of writing a will, they envision leaving their assets to their family members. However, for various reasons, some individuals may choose to leave their assets to their close friends instead. In California, it is legal to name friends as beneficiaries in your will.

Who can be listed as a beneficiary?

You can name multiple contingent beneficiaries and specify different percentages for each. Like primary beneficiaries, they can be individuals, charities, trusts, or your estate. They have no rights to the assets while primary beneficiaries are still living and eligible to inherit.

Can I add my girlfriend as a beneficiary for life insurance?

You can name anyone you want as a beneficiary of your FEGLI life insurance coverage.

Who is best to list as a beneficiary?

A lot of people name a close relative—like a spouse, brother or sister, or child—as a beneficiary. You can also choose a more distant relative or a friend. If you want to designate a friend as your beneficiary, be sure to check with your insurance company or directly with your state.

Who can not be a preferred beneficiary?

Note that the preferred beneficiary status does not apply to siblings.

Who is my beneficiary if I'm single?

If you are single, you may designate anyone you choose as your beneficiaries, such as a family member, friend, charity, or organization.

What are the 3 types of beneficiaries?

A primary beneficiary is the person (or people or organizations) you name to receive your stuff when you die. A contingent beneficiary is second in line to receive your assets in case the primary beneficiary passes away. And a residuary beneficiary gets any property that isn't specifically left to another beneficiary.

Who can be nominated as a beneficiary?

You can nominate one or more persons. Beneficiaries should include your spouse or partner, your children, any person financially dependent on you (a parent or sometimes even your domestic worker) or any person you want to receive a part of your benefit.

Who are exempt beneficiaries?

Spouses, civil partners and charities are exempt beneficiaries so tax is not charged on assets left to them whatever their value. It is possible to claim a deceased spouse's NRB where they have not used all of their allowance and this is known as the transferable NRB.