A Guide to Will Beneficiaries
To most persons, thinking about death is an abomination. Death is however a reality of life that must be accepted. It is for this reason that writing a will is important. Writing a will starts with naming your dependents. 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.
A beneficiary is defined as the person named in the will to inherit the property. The beneficiary is named as a successor of an estate, investment or even insurance policy. 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 avoids confusion upon death.
Even after writing the will, revisit it regularly. There are life changes that can lead you to change the content of the will. Consider having alternate beneficiaries in the will. In case the primary beneficiary in the will dies, the secondary one takes over. Ensure that your will is updated at all times.
There are several categories of beneficiaries. First, we have 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. 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. Insurance companies will always ask for this person first. Contingent or alternate beneficiaries form another group of beneficiaries. This is the alternative beneficiary if the primary beneficiary was to die before getting the inheritance. Apart from the primary and the alternate, there are also residuary beneficiaries. These are persons named to receive specific items from the benefactor. An example is when a grandmother assigns a particular jewel to a grandchild.
It is also possible to name alternate residuary benefactors for residuary benefactors. A will can name many people. A lot of people prefer to have their spouses as beneficiaries. After naming the spouse, it is good to name the alternate beneficiary. Children fit this part perfectly. Most people do however name children as primary beneficiaries.
It is also possible to have charities and friends as beneficiaries in your will. You make this call. You can get more info about wills and beneficiaries online and grow your knowledge appropriately from this site. Generally, writing a will is very important since nobody knows when death will occur hence the importance of preparing in advance.