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. To write a will, start by identifying your dependents. Dependents can be different people ranging from family members to friends. 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 beneficiary will end up inheriting the estate stated in the will. If the beneficiary is a minor upon death of the will owner, he or she will inherit the property upon attaining legal age. The benefactor should tell the beneficiaries 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. 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. Keep your will documents up to date.
There are several categories of beneficiaries. The first one is the irrevocable beneficiary. Get legal counsel and financial advice before settling on an irrevocable beneficiary. Irrevocable beneficiaries are very difficult to change. The second type is the revocable beneficiary. It is possible to alter revocable beneficiaries. For instance, factors like marriage or divorce.
A primary beneficiary is defined as the person who is in line directly to receive your assets upon your death. This person is of interest to most insurance companies. Contingent or alternate beneficiaries form another group of beneficiaries. In case there is death of the primary beneficiary, then the contingent beneficiary stands to inherit the properties. Apart from the primary and the alternate, there are also residuary beneficiaries. These are named to get very particular items from the benefactors. For instance, a grandmother can name a grandchild to receive her special ornaments upon her death.
Residuary benefactors can also have alternate benefactors under them. A will can name many people. 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.
There are special cases where people name friends or charities as beneficiaries to their assets. These are just life choices. 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.