Beneficiaries of Wills – What to Know
Most people do not like thinking about their death. It is however impossible to ignore death as a reality of life. It is for this reason that writing a will is important. Writing a will starts with naming your dependents. Very many different people can be the dependents. Of importance is to ensure they know in advance.
A beneficiary is defined as the person named in the will to inherit the property. The beneficiary is named as a successor of an estate, investment or even insurance policy. In case the beneficiary is a minor, he or she will wait to reach legal age to inherit the property. As the benefactor, let the beneficiaries be aware of the will early. This avoids confusion upon death.
Even after writing the will, revisit it regularly. Life brings about many changes hence the need to review a will regularly. Do also have alternate beneficiaries, also called secondary beneficiaries. This means that if the primary beneficiary was to die, the secondary ones will inherit your assets automatically. Keep your will documents up to date.
There are different types of beneficiaries to be considered as you write your will. The first one is the irrevocable beneficiary. Get legal counsel and financial advice before settling on an irrevocable beneficiary. Irrevocable beneficiaries are very difficult to change. Then there are revocable beneficiaries. It is possible to alter revocable beneficiaries. Things like marriage or divorce can call for alteration of beneficiaries.
A primary beneficiary is basically the person who receives the money once you die. Most insurance companies want to know the primary beneficiary. Contingent or alternate beneficiaries form another group of beneficiaries. In case there is death of the primary beneficiary, then the contingent beneficiary stands to inherit the properties. Others are 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.
Point to remember is that residuary beneficiaries can also have alternate residuary beneficiaries in place. There are many people who can be named as beneficiaries in a will. The spouse is the most preferred person by most people. The alternate beneficiary should be named after naming the spouse. Children would be the ideal alternate beneficiaries after the spouse is named as the primary beneficiary. Most people do however name children as primary beneficiaries.
There are special cases where people name friends or charities as beneficiaries to their assets. It is a personal choice. To get more info and discover more about how to write your will, visit the homepage of a credible website and learn more. The fact that we never know when death will come to us means that writing a will early is of vital importance.