Beneficiaries of Wills – What to Know
To most persons, thinking about death is an abomination. 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. Knowing your dependents is the first step in writing the will. 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. 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. Life brings about many changes hence the need to review a will regularly. 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. Always ensure your will documents are up to date.
Beneficiaries fall in different categories. First, we have the irrevocable beneficiary. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. It is very difficult to change the identified irrevocable beneficiaries. The second type is the revocable beneficiary. This category of beneficiaries can be altered. Beneficiaries can be altered due to things like marriage or divorce.
A primary beneficiary is defined as the person who is in line directly to receive your assets upon your death. Most insurance companies want to know the primary beneficiary. 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. 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.
It is also possible to name alternate residuary benefactors for residuary benefactors. People to be named in a will are many. Most people prefer to name their spouses as primary beneficiaries. 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. You make this call. 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.
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