A Guide to Will Beneficiaries
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. Knowing your dependents is the first step in writing the will. 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 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. 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 way, there will be no confusion one he or she passes on.
A written will should be revisited once in a while. There are life changes that can lead you to change the content of the will. 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. Ensure that your will is updated at all times.
There are different types of beneficiaries to be considered as you write your will. The first one is the irrevocable beneficiary. Seek advice of your attorney and financial advisor before naming irrevocable beneficiaries. It is very difficult to change the identified irrevocable beneficiaries. The second type is the revocable beneficiary. It is possible to alter revocable beneficiaries. Things like marriage or divorce can call for alteration of beneficiaries.
A primary beneficiary is defined as the person who is in line directly to receive your assets upon your death. Insurance companies will always ask for this person first. The other group of beneficiaries is the contingent or alternate beneficiary. If the primary beneficiary dies before inheriting the property, the contingent beneficiary gets the assets. Others are residuary beneficiaries. Residuary beneficiaries get very unique and specific items stated by 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. There are many people who can be named as beneficiaries in a will. The spouse is the most preferred person by most people. However, it is important to name an alternate beneficiary after 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.
It is also possible to have charities and friends as beneficiaries in your will. You make this call. 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.