A beneficiary, in a general sense, is a person or entity who can gain an advantage or receive money or other benefits from something. In an investment account, a beneficiary typically refers to someone eligible to receive distributions from a trust, will, life insurance policy, or other like-investment accounts.
As it relates to deals on the Marketplace, investors often view the beneficiary as the person(s) or entity(ies) who they intend to inherit and/or “takeover” the investor’s investment in a particular offering in the event of death. In effect, however, this generally requires a transfer of the investor’s interest to the beneficiary.
Because of the regulatory challenges associated with transfers of investment in private offerings, at this time, you cannot designate a beneficiary for your CrowdStreet account. We advise investors or prospective investors to consult with an estate planner, tax professional, and/or legal adviser regarding estate planning issues related to your Investing Accounts on the CrowdStreet Marketplace, and carefully review the details in each offering document as it relates to transfers of the membership interest before making an investment.
For more information, refer to this article: Transferring ownership of an investment.