A Guide to Will Beneficiaries
People fear talking about death. It is however impossible to ignore death as a reality of life. This is the reason why it is important to write a will so that your dependents can be comfortable when you leave this world. To write a will, start by identifying your dependents. There are many people who can be the dependents. It is important though to let them know of the 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 is named as a successor of an estate, investment or even insurance policy. Sometimes the beneficiary is a minor which means that they will wait to reach legal age to get the benefits in the will. As the benefactor, let the beneficiaries be aware of the will early. This will eradicate confusion when you die.
A written will should be revisited once in a while. Changes in life can necessitate altering the will. 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. First, we have the irrevocable beneficiary. 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. Then there are revocable beneficiaries. This one can be changed in case something happens in life. Beneficiaries can be altered due to things like marriage or divorce.
The person who is designated to receive property when you die is the primary beneficiary. This person is of interest to most insurance companies. The other group of beneficiaries is the contingent or alternate beneficiary. If the primary beneficiary dies before inheriting the property, the contingent beneficiary gets the assets. Apart from the primary and the alternate, there are also residuary beneficiaries. These are persons named to receive specific items from the benefactor. 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. There are many people who can be named as beneficiaries in a will. Most people prefer to name their spouses as primary beneficiaries. 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.
Friends and charities can also be named as beneficiaries. You make this call. More information about wills can be found online for further reading. In conclusion, it is important to write your will early since we never know what will happen next in life.