Beneficiaries of Wills – What to Know
Most people do not like thinking about their 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. Knowing your dependents is the first step in writing the will. There are many people who can be the dependents. It is also important for dependents to understand the will and how to translate its contents.
The definition of a beneficiary is the person who is in line for inheritance upon death of the owner of the will. The successor to an estate or other assets is the beneficiary. 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 will eradicate confusion when you die.
After writing your will, make it a habit to revisit and review it regularly. Changes in life can necessitate altering the will. Consider having alternate beneficiaries in the will. This means that if the primary beneficiary was to die, the secondary ones will inherit your assets automatically. 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 one is the irrevocable beneficiary. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. Irrevocable beneficiaries are very difficult to change. Then there are revocable beneficiaries. It is possible to alter revocable beneficiaries. For instance, factors like marriage or divorce.
A primary beneficiary is basically the person who receives the money once you die. Most insurance companies want to know the primary beneficiary. 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. Another group is that of residuary beneficiaries. Residuary beneficiaries get very unique and specific items stated by the benefactor. Case in point is a grandmother gifting a specific jewel to a grandchild.
Point to remember is that residuary beneficiaries can also have alternate residuary beneficiaries in place. A will can name many people. A lot of people prefer to have their spouses as beneficiaries. The alternate beneficiary should be named after naming 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. The fact that we never know when death will come to us means that writing a will early is of vital importance.