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.

  1. Alternate Beneficiary

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  3. Beneficiary

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  4. Beneficial Interest

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  5. Contingent Beneficiary

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  1. What are the pros/cons of naming a trust as the beneficiary of a retirement account?

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