When it comes to wills and trusts, there is no shortage of legalese and perplexing terminology. A lot of confusion often arises over the difference between the designations of beneficiary and current beneficiary. The estate planning attorneys of Pater, Pater & Halverson Co. have been serving the residents of the Hamilton, Ohio, area for over century. This skilled legal team is here to demystify the estate planning process and provide clear legal solutions.

Here, they discuss the difference between a beneficiary and a current beneficiary by answering some common questions:

• What Is A Beneficiary? A beneficiary is anyone named in a trust as someone who will receive money from that trust. There are two types of beneficiaries — current and contingent. Under Ohio law, the type of beneficiary you are determines what you are entitled to receive.
• What Is A Current Beneficiary? A current beneficiary is someone designated by the trust as a beneficiary who is presently entitled to money from said trust. Current beneficiaries receive their distributions as soon as their statuses are verified. Any monies remaining in the trust after the current beneficiaries receive their payout is then left to the contingent or remainder beneficiaries. Your estate planning attorney at Pater, Pater & Halverson Co. will help you understand the differences between these two designations.
• What Is An Example Of A Current Beneficiary Vs. A Contingent One? Imagine that an elderly man with considerable financial assets passes away. He has established a trust that ensures his wife receives regular financial support for the rest of her life — she is the current beneficiary. He also has property in the form of a summer home, which is passed along to his children — they are the contingent beneficiaries.

By knowing the differences between a beneficiary and a current beneficiary, you can start making the appropriate plans to ensure your estate is handled according to your wishes. Call Pater, Pater & Halverson Co. at (513) 867-1411 to schedule a consultation with an estate planning lawyer. You can visit the firm's website to learn more about their history and other practice areas, and find the firm on Facebook, Twitter, and Google +.