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. Writing a will starts with naming your dependents. Dependents can be different people ranging from family members to friends. It is important though to let them know of the contents.
A beneficiary is the person who is named in a will to benefit from the assets of the person who wrote the will. The beneficiary will end up inheriting the estate stated in the will. 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 avoids confusion upon death.
After writing your will, make it a habit to revisit and review it regularly. There are life changes that can lead you to change the content of the will. Of importance also is that you should also have alternate or secondary beneficiaries. In case the primary beneficiary in the will dies, the secondary one takes over. Always ensure your will documents are up to date.
There are different types of beneficiaries to be considered as you write your will. First, we have the irrevocable beneficiary. Seek advice of your attorney and financial advisor before naming irrevocable beneficiaries. Irrevocable beneficiaries are very difficult to change. On the other hand, there are revocable beneficiaries. It is possible to alter revocable beneficiaries. Beneficiaries can be altered due to things like marriage or divorce.
A primary beneficiary is basically the person who receives the money once you die. This person is of interest to most insurance companies. Then there is a 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. These are named to get very particular items from the benefactors. 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. There are many people who can be named as beneficiaries in a will. A lot of people prefer to have their spouses as beneficiaries. After naming the spouse, it is good to name the alternate beneficiary. A good choice here would be the children. 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. The fact that we never know when death will come to us means that writing a will early is of vital importance.