A Guide to Will Beneficiaries
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. To write a will, start by identifying your dependents. Dependents can be different people ranging from family members to friends. 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 beneficiary is named as a successor of an estate, investment or even insurance policy. 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.
Even after writing the will, revisit it regularly. Life brings about many changes hence the need to review a will regularly. Of importance also is that you should also have alternate or 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. The first category has irrevocable beneficiaries. Get legal counsel and financial advice before settling on an irrevocable beneficiary. This is because it is very difficult to change these beneficiaries once they have been included in the will. 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 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. 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. These are persons named to receive specific items from 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. There are many people who can be named as beneficiaries in a will. Most people prefer to name their spouses as primary beneficiaries. The alternate beneficiary should be named after naming the spouse. Children would be the ideal alternate beneficiaries after the spouse is named as the primary beneficiary. To many other people, children are primary beneficiaries.
It is also possible to have charities and friends as beneficiaries in your will. You make this call. To get more info and discover more about how to write your will, visit the homepage of a credible website and learn more. Generally, writing a will is very important since nobody knows when death will occur hence the importance of preparing in advance.
Advanced reading: click resources