Beneficiaries of Wills – What to Know
To most persons, thinking about death is an abomination. Death is however a reality of life that must be accepted. It is for this reason that writing a will is important. To write a will, start by identifying your dependents. Dependents can be different people ranging from family members to friends. It is also important for dependents to understand the will and how to translate its contents.
The definition of a beneficiary is the person who is in line for inheritance upon death of the owner of the will. The beneficiary will end up inheriting the estate stated in the will. If the beneficiary is a minor upon death of the will owner, he or she will inherit the property upon attaining legal age. As the benefactor, let the beneficiaries be aware of the will early. This avoids confusion upon death.
A written will should be revisited once in a while. Life brings about many changes hence the need to review a will regularly. Consider having alternate beneficiaries in the will. If the primary beneficiary dies, the secondary one takes over. Ensure that your will is updated at all times.
There are different types of beneficiaries to be considered as you write your will. First, we have the irrevocable beneficiary. Seek advice of your attorney and financial advisor before naming irrevocable beneficiaries. It is very difficult to change the identified irrevocable beneficiaries. The second type is the revocable beneficiary. This category of beneficiaries can be altered. For instance, factors like marriage or divorce.
A primary beneficiary is defined as the person who is in line directly to receive your assets upon your death. Insurance companies will always ask for this person first. Then there is a contingent or alternate beneficiary. In case there is death of the primary beneficiary, then the contingent beneficiary stands to inherit the properties. Apart from the primary and the alternate, there are also residuary beneficiaries. These are named to get very particular items from the benefactors. For instance, a grandmother can name a grandchild to receive her special ornaments upon her death.
Residuary benefactors can also have alternate benefactors under them. People to be named in a will are many. The spouse is the most preferred person by most people. After naming the spouse, it is good to name the alternate beneficiary. Children would be the ideal alternate beneficiaries after the spouse is named as the primary beneficiary. To many other people, children are primary beneficiaries.
There are special cases where people name friends or charities as beneficiaries to their assets. These are just life choices. You can get more info about wills and beneficiaries online and grow your knowledge appropriately from this site. The fact that we never know when death will come to us means that writing a will early is of vital importance.