Irrevocable Beneficiary

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Definition of 'Irrevocable Beneficiary'

An irrevocable beneficiary is a person or entity that has been named in a trust document as the recipient of the trust assets. The beneficiary cannot change the terms of the trust or revoke their designation as beneficiary. This means that the trust assets will be distributed to the beneficiary according to the terms of the trust document, even if the beneficiary dies or becomes incapacitated.

There are several reasons why someone might choose to make an irrevocable beneficiary designation. For example, a person may want to ensure that their assets are distributed to a specific person or entity, even if they change their mind later on. Additionally, an irrevocable beneficiary designation can help to avoid probate, which is the legal process of distributing a deceased person's assets.

It is important to note that irrevocable beneficiary designations are not always reversible. Once a beneficiary has been named, they cannot change their designation or revoke their consent to be a beneficiary. This is why it is important to carefully consider who you name as an irrevocable beneficiary.

If you are considering making an irrevocable beneficiary designation, it is important to speak with an experienced estate planning attorney. An attorney can help you understand the implications of an irrevocable beneficiary designation and can help you create a trust document that meets your specific needs.

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