Typically this term is used with regard to a will, trust or insurance policy. The alternate beneficiary is the person, organization or institution that receives property when the beneficiary named in the will, trust or insurance policy is unable or refuses to accept the property. For example, a beneficiary who is an ardent supporter of green technology is left a gas powered car. The beneficiary may refuse the gift, which will go to the alternate, who may be a relative of the beneficiary or other designated person or entity.