A Guide to Will Beneficiaries
To most persons, thinking about death is an abomination. However, this is a reality of life that we cannot wish away. This is why you are advised to write a will early in life. Writing a will starts with naming your dependents. There are many people who can be the dependents. Of importance is to ensure they know in advance.
The definition of a beneficiary is the person who is in line for inheritance upon death of the owner of the will. The beneficiary will end up inheriting the estate stated in the will. 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 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. Do also have alternate beneficiaries, also called secondary beneficiaries. If the primary beneficiary dies, the secondary one takes over. Keep your will documents up to date.
There are several categories of beneficiaries. The first one is 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. It is possible to alter revocable beneficiaries. 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. Insurance companies will always ask for this person first. Contingent or alternate beneficiaries form another group of beneficiaries. In case there is death of the primary beneficiary, then the contingent beneficiary stands to inherit the properties. 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. A will can name many people. A lot of people prefer to have their spouses as beneficiaries. After naming the spouse, it is good to name the alternate beneficiary. A good choice here would be the children. Most people do however name children as primary beneficiaries.
It is also possible to have charities and friends as beneficiaries in your will. It is a personal choice. You can get more info about wills and beneficiaries online and grow your knowledge appropriately from this site. In conclusion, it is important to write your will early since we never know what will happen next in life.