Beneficiaries of Wills – What to Know
People fear talking about death. Death is however a reality of life that must be accepted. This is why you are advised to write a will early in life. Writing a will starts with naming 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. Sometimes the beneficiary is a minor which means that they will wait to reach legal age to get the benefits in the will. The benefactor should tell the beneficiaries about the will early. This way, there will be no confusion one he or she passes on.
Even after writing the will, revisit it regularly. There are life changes that can lead you to change the content of the will. Do also have alternate beneficiaries, also called secondary beneficiaries. In case the primary beneficiary in the will dies, the secondary one takes over. 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. Get legal counsel and financial advice 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. Then there are revocable beneficiaries. This category of beneficiaries can be altered. Beneficiaries can be altered due to things 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. Then there is a contingent or alternate beneficiary. This is the alternative beneficiary if the primary beneficiary was to die before getting the inheritance. 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.
It is also possible to name alternate residuary benefactors for residuary benefactors. There are many people who can be named as beneficiaries in a will. Most people prefer to name their spouses as primary beneficiaries. 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.
There are special cases where people name friends or charities as beneficiaries to their assets. It is a personal choice. 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.