Regardless of who it is that you appoint as your beneficiary, it is vital to determine whether you wish your beneficiary designation to be revocable or irrevocable. A revocable beneficiary is one that may be changed at any time by the policy owner without the knowledge or consent of the present beneficiary.

In contrast, an irrevocable beneficiary designation ensures that the policy holder cannot change any aspect of the insurance policy without the consent of the present beneficiary. This type of designation is often beneficial in situations involving divorce settlements where the court requires that an ex-spouse be named as an irrevocable beneficiary on a policy to protect his/her financial interests should the support paying spouse pass away.

As with any important decision, it is wise to take the time to think it through clearly before making your final choice. It may also be wise for you to list a contingent (or secondary) beneficiary. A contingent beneficiary is someone who would receive the proceeds of your life insurance policy if your primary beneficiary should die before or at the same time as you. Naming a contingent beneficiary is a common practice when a policy holder names their spouse as the primary beneficiary. They will often then designate their child or children as contingent beneficiaries.

Once your beneficiary designation has been made, remember to revisit the issue frequently to review your decision and determine if it is still the best option for you. Life events such as marriages, births, deaths and divorces may play a large role in your changing family structure and may create the need to change your beneficiary designation.

It is never easy to envision a time when you may not be here to enjoy life with your loved ones. However, giving some care and consideration to matters such as designating a beneficiary and completing a Will, will go a long way to providing you and them with a large measure of security for the future.

As we see designating beneficiaries have great advantages and a few pitfalls - far too many to review within this medium. However, your best advised to seek professional counsel from a qualified advisor.

Below we list a few points that may help you understand some of the caveats:

	Naming a beneficiary for an RRSP, RRIF that's issued by a Bank or Trust company may not avoid probate because the financial institution can insist on probate to protect themselves prior to releasing the funds. One reason is that a Will and its designated beneficiaries can override the beneficiary on file at the bank, is if the Will was prepared or updated after the RRSP/RRIF designation is made. Some institutions may use a benchmark amount $30.000. before insisting on probate or require a letter or indemnity for protection.
	If you designate your estate as the benefactor of any pension, RSP and RIFF probate maybe required because the distribution of those assets will flow through the will.
	RRSP or RRIF contracts by a life insurance company and life insurance policies may avoid probate fees if the contacts include a named beneficiary.
	The last beneficiary on file is going to be the recipient, unless the courts decide otherwise.
	Choosing to elect each other on dual life insurance contracts as "irrevocable beneficiaries" if the parties have dependent children.
	Even If you have not listed your spouse as the beneficiary of you registered retirement monies, it can flow tax fee to them.
	Consider adding contingent beneficiaries to cover the possibility that both you and your primary beneficiary may die at the same time.

On a final note, probate may be inevitable is some circumstances and estate planning is something that may you need to consider.

A consequence of bad planning or management, is that monies that flow to beneficiaries outside of the control of the estate may force the estate to be underfunded for its objectives under the Will, as well as being responsible for any tax liabilities on funds passed directly to the beneficiaries. - You have to remember the tax department wants its pound of flesh, prior to any wishes you may have for your children,grandchildren or a favorite charity.

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