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Irrevocable Beneficiary

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Irrevocable Beneficiary
The beneficiary of an insurance policy or a segregated fund who may not be deprived of his/her right to receive the benefit without his/her own consent. This differs from other types of beneficiaries whose benefit may be changed or eliminated at the discretion of the policyholder or other appropriate party.


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The purchaser of such a policy becomes the irrevocable beneficiary of the policy on purchase.
Plan participants can make an irrevocable beneficiary designation, usually an irrevocable trust for family members.
The simple use of an irrevocable beneficiary designation will accomplish this estate tax exclusion; using an irrevocable trust named irrevocably as the beneficiary, the taxpayer can achieve a second estate bypass on the death of the surviving spouse.
 
 
 
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