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. 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 important though to let them know of the contents.
A beneficiary is the person who is named in a will to benefit from the assets of the person who wrote the will. The beneficiary will end up inheriting the estate stated in the will. 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.
A written will should be revisited once in a while. Changes in life can necessitate altering the will. Consider having alternate beneficiaries in the will. In case the primary beneficiary in the will dies, the secondary one takes over. Always ensure your will documents are up to date.
There are different types of beneficiaries to be considered as you write your will. The first category has irrevocable beneficiaries. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. This is because it is very difficult to change these beneficiaries once they have been included in the will. On the other hand, 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. Insurance companies will always ask for this person first. Contingent or alternate beneficiaries form another group of beneficiaries. This is the alternative beneficiary if the primary beneficiary was to die before getting the inheritance. Others are 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.
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. A lot of people prefer to have their spouses as beneficiaries. However, it is important to name an alternate beneficiary after the spouse. Children fit this part perfectly. There are many people who prefer to have children as primary beneficiaries.
It is also possible to have charities and friends as beneficiaries in your will. It is a personal choice. You can get more info about wills and beneficiaries online and grow your knowledge appropriately from this site. In conclusion, it is important to write your will early since we never know what will happen next in life.