Beneficiaries of Wills – What to Know
Most people do not like thinking about their death. Death is however a reality of life that must be accepted. It is for this reason that writing a will is important. Knowing your dependents is the first step in writing the will. Very many different people can be the dependents. 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 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. 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. Always ensure your will documents are 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. It is very difficult to change the identified irrevocable beneficiaries. 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. This person is of interest to most insurance companies. Then there is a contingent or alternate beneficiary. In case there is death of the primary beneficiary, then the contingent beneficiary stands to inherit the properties. Others are 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.
It is also possible to name alternate residuary benefactors for residuary benefactors. A will can name many people. The spouse is the most preferred person by most people. The alternate beneficiary should be named after naming the spouse. A good choice here would be the children. There are many people who prefer to have children as primary beneficiaries.
Friends and charities can also be named as beneficiaries. 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. The fact that we never know when death will come to us means that writing a will early is of vital importance.