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. Writing a will starts with naming your dependents. Dependents can be different people ranging from family members to friends. It is important though to let them know of the contents.
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. It is important for the benefactor to let the beneficiaries know about the will early. This way, there will be no confusion one he or she passes on.
After writing your will, make it a habit to revisit and review it regularly. Changes in life can necessitate altering the will. Do also have alternate beneficiaries, also called 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. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. Irrevocable beneficiaries are very difficult to change. On the other hand, there are revocable beneficiaries. This category of beneficiaries can be altered. Things like marriage or divorce can call for alteration of beneficiaries.
The person who is designated to receive property when you die is the primary beneficiary. Insurance companies will always ask for this person first. Then there is a contingent or alternate beneficiary. This is the alternative beneficiary if the primary beneficiary was to die before getting the inheritance. Another group is that of 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.
It is also possible to name alternate residuary benefactors for residuary benefactors. People to be named in a will are many. Most people prefer to name their spouses as primary beneficiaries. However, it is important to name an alternate beneficiary after the spouse. Children fit this part perfectly. Most people do however name children as primary beneficiaries.
It is also possible to have charities and friends as beneficiaries in your will. 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. Generally, writing a will is very important since nobody knows when death will occur hence the importance of preparing in advance.