Beneficiaries of Wills – What to Know
People fear talking about death. However, this is a reality of life that we cannot wish away. This is the reason why it is important to write a will so that your dependents can be comfortable when you leave this world. To write a will, start by identifying your dependents. Very many different people can be the dependents. It is also important for dependents to understand the will and how to translate its 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. 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 will eradicate confusion when you die.
Even after writing the will, revisit it regularly. Changes in life can necessitate altering the will. Consider having alternate beneficiaries in the will. If the primary beneficiary 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. This is because it is very difficult to change these beneficiaries once they have been included in the will. On the other hand, there are revocable beneficiaries. This one can be changed in case something happens in life. 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. The other group of beneficiaries is the contingent or alternate beneficiary. 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 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. People to be named in a will are many. The spouse is the most preferred person by most people. 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. Most people do however name children as primary beneficiaries.
There are special cases where people name friends or charities as beneficiaries to their assets. These are just life choices. To get more info and discover more about how to write your will, visit the homepage of a credible website and learn more. In conclusion, it is important to write your will early since we never know what will happen next in life.