Explanation
designation controls claim direction and can limit owner actions. Revocable designations preserve flexibility, while irrevocable designations may require consent for important contract changes.
Example
If a is irrevocable, the owner may need that ’s written consent to borrow against or change designated beneficiaries.
Common mistakes
Many owners fail to review designations after family changes. Outdated instructions can override intentions expressed in other planning documents.
Summary
strategy should balance control, protection, and administrative clarity over time.