Beneficiaries of Wills – What to Know
People fear talking about death. It is however impossible to ignore death as a reality of life. This is why you are advised to write a will early in life. To write a will, start by identifying 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 successor to an estate or other assets is the beneficiary. In case the beneficiary is a minor, he or she will wait to reach legal age to inherit the property. 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. Changes in life can necessitate altering the will. Do also have alternate beneficiaries, also called secondary beneficiaries. If the primary beneficiary dies, the secondary one takes over. Keep your will documents up to date.
There are several categories of beneficiaries. First, we have 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. 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. Insurance companies will always ask for this person first. Contingent or alternate beneficiaries form another group of beneficiaries. 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.
Residuary benefactors can also have alternate benefactors under them. People to be named in a will are many. The spouse is the most preferred person by most people. 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. More information about wills can be found online for further reading. Generally, writing a will is very important since nobody knows when death will occur hence the importance of preparing in advance.
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