Can a Beneficiary Name Their Own Beneficiary?

Usually not. In most cases, the instrument naming the beneficiary also has provisions saying what would happen should a beneficiary die. It’s not clear whether you are talking about a beneficiary designation on bank or investment account, a retirement plan, or a trust. The one situation where a beneficiary may name their own beneficiary is with a trust. Some trusts give beneficiary the power, known as a “power of appointment,” to name a subsequent beneficiary. These powers may be general, meaning they can name anyone, or limited, meaning they can only redirect the property to a limited class of people, such as members of the grantor’s family.

Harry S. Margolis practices elder law, estate, and special needs planning in Boston and Wellesley, Massachusetts. He is the founder of ElderLawAnswers.com and answers consumer questions about estate planning issues here and at AskHarry.info.