المستفيد اللا رجعي هو الشخص أو الكيان الذي يستفيد من عقد أو وثيقة تأمينية أو مالية ولا يمكن تغيير أو إلغاء فائدته بعد توقيع العقد. بمعنى آخر، بعد أن يتم تعيين المستفيد، لا يمكن للجهة الملتزمة بالعقد تعديل أو إلغاء الفائدة المعينة لهذا المستفيد، حتى لو تغيرت الظروف. يعتبر هذا النوع من المستفيدين شائعاً في وثائق التأمين على الحياة، حيث يضمن للمستفيد الحصول على التعويض المتفق عليه بغض النظر عن أي تغييرات قد تحدث في العلاقة بين المؤمن عليه والمستفيد.

Definition of Irrevocable Beneficiary

An irrevocable beneficiary is a beneficiary named in a life insurance policy who cannot be removed as a beneficiary from the policy unless they agree to it. The irrevocable beneficiary can only be changed with the beneficiary’s own consent.

How Does an Irrevocable Beneficiary Work?

Beneficiaries are named when purchasing a life insurance policy. For example, a father may wish to purchase a life insurance policy so that his adult children receive enough money to cover his large funeral costs upon his death. He will name the children as beneficiaries and will specify whether they are irrevocable or revocable beneficiaries.

If the father decides he wants a modest funeral, he may wish to change the beneficiary to a preferred charity. If the children are named as revocable beneficiaries, he only needs to contact the insurance company and fill out a form to make the change. However, if they are named as irrevocable beneficiaries, he must obtain a signed consent from each child before the insurance company makes the change.

In addition to changing beneficiaries, other changes to the policy such as withdrawing cash value, policy loans, policy surrender, and ownership transfer must be approved by any irrevocable beneficiary.

By making the beneficiary irrevocable, a life insurance policy can ensure protection for the beneficiary from unexpected changes.

Why Choose an Irrevocable Beneficiary?

Naming an irrevocable beneficiary may be something you choose if you want to provide for that person regardless of what happens and if you are comfortable giving them ownership of the policy. It may also be something you are required to choose. For example, in the case of a divorce, a court may mandate that you name your spouse as an irrevocable beneficiary.

Having an irrevocable beneficiary in a life insurance policy can also provide another benefit, which is related to estate taxes.

Irrevocable Beneficiary and Estate Taxes

Life insurance benefits are generally exempt from income tax and may also be exempt from estate tax. However, there are many exceptions to this rule. Individuals who are likely to leave an estate larger than the estate tax exemption set by the IRS (currently exempt from estate tax up to $11.7 million) must be especially cautious to avoid issues.

For a life insurance policy to be exempt from estate taxes, the ownership must be considered by the beneficiary. If the policyholder does not have control, the IRS states that the policy purchaser does not have an ownership interest. The policy purchaser may pay for the policy (and is considered the owner by the insurance company), but if the purchaser is named irrevocably, they do not control the policy after the initial transaction. In other words, if an irrevocable beneficiary is named, death benefits may be exempt from estate taxes.

If the policyholder has the ability to cancel, surrender, loan, or pledge the policy as collateral, they may be considered an owner and the death benefits may not be exempt from estate taxes.

To use life insurance to pay estate taxes, the policy purchaser must ensure that the benefits will not go to the estate or that they will increase the estate’s value for tax purposes. Instead, the beneficiary (and owner) of the policy can be an irrevocable life insurance trust (ILIT). Therefore, the benefits are not included in the estate, nor is the trust. The details can be complex, so anyone considering this should consult an estate attorney for proper advice.

Why Choose a Revocable Beneficiary?

Choosing a

Beneficiary changeable is common, and it does not mean that the policyholder is not fixed – the choice guarantees flexibility.

For example, someone may want to provide benefits to their spouse but also wants to change the beneficiary in the event of divorce or death. Or they might simply want the ability to borrow or withdraw from the life insurance policy without obtaining the spouse’s consent. This requires a changeable beneficiary.

Or parents may want to name their adult children as changeable beneficiaries so that they are financially secured. If this happens, parents may choose a charity or another beneficiary at their discretion.

It is best to avoid naming minor children as beneficiaries of a life insurance policy or to appoint a guardian when doing so.

Alternative Beneficiaries vs. Irrevocable Beneficiaries

The concern many people have about irrevocable beneficiaries is that the named beneficiary may die before the policyholder. The solution to this problem is to have an alternative beneficiary who will receive the funds if the named beneficiary dies first. The policyholder can name their spouse as an irrevocable beneficiary, with a charity as an alternative beneficiary in the event of the spouse’s death.

Another option is to name the policyholder’s estate as an alternative beneficiary. This way, the funds that the original beneficiary would have received will be distributed to the estate.

The best practice is to name the alternative beneficiary at the time of purchasing the insurance policy. The alternative beneficiary can be changeable or irrevocable, just like the primary beneficiary.

Source: https://www.thebalancemoney.com/what-is-an-irrevocable-beneficiary-5191857