Absolute Beneficiary

DEFINITION of 'Absolute Beneficiary'

A designation of a beneficiary that can not be changed without the written consent of that beneficiary. Also referred to as an "irrevocable beneficiary", absolute beneficiaries can also refer to a trust, an employee benefit plan such as a pension, or any other instrument or contract with a beneficiary clause.

BREAKING DOWN 'Absolute Beneficiary'

The naming of absolute beneficiaries is common in divorce settlements or liability cases where part of the settlement is the naming of a given person as a beneficiary. Any designations of absolute beneficiaries should be made very carefully and with professional consultation.