A person or entity, known as a primary beneficiary, holds the first right to inherit an asset. Retirement plans, annuities, and life insurance policies typically allow the account owner to designate primary beneficiaries. These can include individuals, trusts, or charitable organizations, and multiple primary beneficiaries can be named. Upon the account holder's death, the beneficiaries receive the assets without going through probate court, regardless of what is stated in the account holder's will. In some retirement plans, spousal consent may be required before designating someone else as the primary beneficiary.
