Beneficiaries of Wills – What to Know
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. There are many people who can be the dependents. It is important though to let them know of the contents.
A beneficiary is defined as the person named in the will to inherit the property. 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.
After writing your will, make it a habit to revisit and review it regularly. Life brings about many changes hence the need to review a will regularly. Do also have alternate beneficiaries, also called secondary beneficiaries. In case the primary beneficiary in the will dies, the secondary one takes over. Always ensure your will documents are up to date.
There are several categories of beneficiaries. 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. On the other hand, there are revocable beneficiaries. It is possible to alter revocable beneficiaries. For instance, factors like marriage or divorce.
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. If the primary beneficiary dies before inheriting the property, the contingent beneficiary gets the assets. Others are 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.
Point to remember is that residuary beneficiaries can also have alternate residuary beneficiaries in place. A will can name many people. The spouse is the most preferred person by most people. After naming the spouse, it is good to name the alternate beneficiary. Children fit this part perfectly. To many other people, children are primary beneficiaries.
It is also possible to have charities and friends as beneficiaries in your will. You make this call. To get more info and discover more about how to write your will, visit the homepage of a credible website and learn more. The fact that we never know when death will come to us means that writing a will early is of vital importance.