Accounting Fundamentals Certification (AFC) Practice Test

The term that designates the recipient of an asset upon the death of the owner is "beneficiary." A beneficiary is an individual or entity that is entitled to receive assets, such as money or property, from an estate after someone passes away. This designation is often specified in a will, trust, or other estate planning documents. A personal representative is responsible for managing the deceased person's estate but does not directly indicate who will receive the assets. The power of attorney refers to a legal document that allows one person to act on behalf of another, particularly in financial or legal matters, but it ceases to be effective upon the death of the principal. An estate executor is the individual named in a will to execute the estate's terms and ensure that wishes are carried out, but again, this role does not define who receives the assets; that is the role of the beneficiary.