While planning your estate, it is important to know the two types of beneficiaries and their differences. This helpful article helps illustrate their major differences as well as their pros and cons. Revocable beneficiaries can be changed without the beneficiary’s knowledge or consent at any time. The owner of the account has full control over the assets and has the flexibility to change the beneficiary as circumstances evolve.
Irrevocable beneficiaries cannot be changed without the beneficiary’s written consent and gives certain legal rights to the beneficiary. This is a much more permanent designation than a revocable beneficiary.
Which type is right for you? It can vary depending on a number of factors. While there are numerous advantages of revocable beneficiaries, they don’t come without some limitations. For example, if you don’t remember to update your designations if circumstances change, such as divorce, you may face negative consequences.
A seasoned family planning attorney can help you navigate which is right for you and help you make the best decision for your family. Contact Rhodes Law Firm today to learn more!