Beneficiaries of Wills – What to Know
Most people do not like thinking about their death. Death is however a reality of life that must be accepted. This is why you are advised to write a will early in life. Knowing your dependents is the first step in writing the will. Dependents can be different people ranging from family members to friends. Of importance is to ensure they know in advance.
The definition of a beneficiary is the person who is in line for inheritance upon death of the owner of the will. The successor to an estate or other assets is the beneficiary. In case the beneficiary is a minor, he or she will wait to reach legal age to inherit the property. The benefactor should tell the beneficiaries about the will early. This way, there will be no confusion one he or she passes on.
Even after writing the will, revisit it regularly. Life brings about many changes hence the need to review a will regularly. Of importance also is that you should also have alternate or secondary beneficiaries. If the primary beneficiary dies, the secondary one takes over. Ensure that your will is updated at all times.
Beneficiaries fall in different categories. The first one is the irrevocable beneficiary. Seek advice of your attorney and financial advisor before naming irrevocable beneficiaries. This is because it is very difficult to change these beneficiaries once they have been included in the will. The second type is the revocable beneficiary. This one can be changed in case something happens in life. Beneficiaries can be altered due to things like marriage or divorce.
A primary beneficiary is defined as the person who is in line directly to receive your assets upon your death. Most insurance companies want to know the primary beneficiary. 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. An example is when a grandmother assigns a particular jewel to a grandchild.
It is also possible to name alternate residuary benefactors for residuary benefactors. There are many people who can be named as beneficiaries in a will. A lot of people prefer to have their spouses as beneficiaries. However, it is important to name an alternate beneficiary after the spouse. Children would be the ideal alternate beneficiaries after the spouse is named as the primary beneficiary. There are many people who prefer to have children as primary beneficiaries.
There are special cases where people name friends or charities as beneficiaries to their assets. You make this call. To get more info and discover more about how to write your will, visit the homepage of a credible website and learn more. In conclusion, it is important to write your will early since we never know what will happen next in life.