Assignment of Benefits:
Assignment of benefits is the process by which one party (the assigning party) grants to another party (the beneficiary, or assignee) an interest in property for the benefit of a third person. The primary objective of assignment is to transfer ownership rights over real estate and other assets, including life insurance policies that contain certain death benefits. Assignment can also be used to create or increase beneficial interests in business entities such as limited liability companies and corporations.
Assignment protects all parties involved since if someone misrepresents his/her status with respect to an asset, then he/she may lose it entirely. Furthermore, any uncertainty regarding who will receive payment upon the death of the owner must be eliminated before an effective assignment is executed by filing documents with county deeds offices where title has been transferred from deceased owners to them prior to their deaths.