Beneficiaries of Wills – What to Know
Most people do not like thinking about their death. However, this is a reality of life that we cannot wish away. This is why you are advised to write a will early in life. Writing a will starts with naming your dependents. Very many different people can be the dependents. It is also important for dependents to understand the will and how to translate its 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. 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 way, there will be no confusion one he or she passes on.
Even after writing the will, revisit it regularly. There are life changes that can lead you to change the content of the will. Consider having alternate beneficiaries in the will. If the primary beneficiary 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. Get legal counsel and financial advice 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. This one can be changed in case something happens in life. Things like marriage or divorce can call for alteration of beneficiaries.
The person who is designated to receive property when you die is the primary beneficiary. Insurance companies will always ask for this person first. The other group of beneficiaries is the contingent or alternate beneficiary. In case there is death of the primary beneficiary, then the contingent beneficiary stands to inherit the properties. Others are residuary beneficiaries. These are persons named to receive specific items from the benefactor. 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. People to be named in a will are many. A lot of people prefer to have their spouses as beneficiaries. However, it is important to name an alternate beneficiary after the spouse. A good choice here would be the children. 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.