Beneficiaries of Wills – What to Know
To most persons, thinking about death is an abomination. However, this is a reality of life that we cannot wish away. It is for this reason that writing a will is important. To write a will, start by identifying your dependents. There are many people who 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 successor to an estate or other assets is the beneficiary. 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 will eradicate confusion when you die.
After writing your will, make it a habit to revisit and review it regularly. Changes in life can necessitate altering the will. 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 different types of beneficiaries to be considered as you write your will. First, we have 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. Then there are revocable beneficiaries. This category of beneficiaries can be altered. For instance, factors 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. This is the alternative beneficiary if the primary beneficiary was to die before getting the inheritance. Others are residuary beneficiaries. These are named to get very particular items from the benefactors. Case in point is a grandmother gifting a specific jewel to a grandchild.
Residuary benefactors can also have alternate benefactors under them. People to be named in a will are many. A lot of people prefer to have their spouses as beneficiaries. However, it is important to name an alternate beneficiary after the spouse. A good choice here would be the children. Most people do however name children as primary beneficiaries.
There are special cases where people name friends or charities as beneficiaries to their assets. You make this call. More information about wills can be found online for further reading. In conclusion, it is important to write your will early since we never know what will happen next in life.
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