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. It is for this reason that writing a will is important. Writing a will starts with naming your dependents. Very many different people can be the dependents. It is important though to let them know of the contents.
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. If the beneficiary is a minor upon death of the will owner, he or she will inherit the property upon attaining legal age. It is important for the benefactor to let the beneficiaries know about the will early. This avoids confusion upon death.
A written will should be revisited once in a while. 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.
Beneficiaries fall in different categories. The first category has irrevocable beneficiaries. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. 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. Most insurance companies want to know the primary beneficiary. Then there is a contingent or alternate beneficiary. If the primary beneficiary dies before inheriting the property, the contingent beneficiary gets the assets. Others are residuary beneficiaries. These are persons named to receive specific items from the benefactor. For instance, a grandmother can name a grandchild to receive her special ornaments upon her death.
It is also possible to name alternate residuary benefactors for residuary benefactors. There are many people who can be named as beneficiaries in a will. The spouse is the most preferred person by most people. After naming the spouse, it is good to name the alternate beneficiary. Children would be the ideal alternate beneficiaries after the spouse is named as the primary beneficiary. Most people do however name children as primary beneficiaries.
It is also possible to have charities and friends as beneficiaries in your will. 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.