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. Writing a will starts with naming your dependents. There are many people who can be the dependents. 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 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. It is important for the benefactor to let the beneficiaries know 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. 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 several categories of beneficiaries. The first one is the irrevocable beneficiary. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. Irrevocable beneficiaries are very difficult to change. On the other hand, there are revocable beneficiaries. This category of beneficiaries can be altered. 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. This person is of interest to most insurance companies. Then there is a contingent or alternate beneficiary. If the primary beneficiary dies before inheriting the property, the contingent beneficiary gets the assets. Another group is that of residuary beneficiaries. Residuary beneficiaries get very unique and specific items stated by the benefactor. For instance, a grandmother can name a grandchild to receive her special ornaments upon her death.
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. 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. Most people do however name children as primary beneficiaries.
Friends and charities can also be named as beneficiaries. 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.