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. Knowing your dependents is the first step in writing the will. Very many different people 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 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. As the benefactor, let the beneficiaries be aware of 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. Changes in life can necessitate altering the will. Of importance also is that you should also have alternate or secondary beneficiaries. If the primary beneficiary dies, the secondary one takes over. Keep your will documents up to date.
Beneficiaries fall in different categories. First, we have the irrevocable beneficiary. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. It is very difficult to change the identified irrevocable beneficiaries. Then there are revocable beneficiaries. This one can be changed in case something happens in life. 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. Most insurance companies want to know the primary beneficiary. Contingent or alternate beneficiaries form another group of beneficiaries. 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. For instance, a grandmother can name a grandchild to receive her special ornaments upon her death.
Residuary benefactors can also have alternate benefactors under them. 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. There are many people who prefer to have children as primary beneficiaries.
Friends and charities can also be named as beneficiaries. It is a personal choice. More information about wills can be found online for further reading. The fact that we never know when death will come to us means that writing a will early is of vital importance.
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