A Guide to Will Beneficiaries
To most persons, thinking about death is an abomination. Death is however a reality of life that must be accepted. This is why you are advised to write a will early in life. Knowing your dependents is the first step in writing the will. Dependents can be different people ranging from family members to friends. It is important though to let them know of the 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 is named as a successor of an estate, investment or even insurance policy. 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 avoids confusion upon death.
A written will should be revisited once in a while. There are life changes that can lead you to change the content of the will. Consider having alternate beneficiaries in the will. If the primary beneficiary 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. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. Irrevocable beneficiaries are very difficult to change. The second type is the revocable beneficiary. 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. Most insurance companies want to know the primary beneficiary. Then there is a contingent or alternate beneficiary. In case there is death of the primary beneficiary, then the contingent beneficiary stands to inherit the properties. Another group is that of residuary beneficiaries. These are named to get very particular items from the benefactors. For instance, a grandmother can name a grandchild to receive her special ornaments upon her death.
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. 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. More information about wills can be found online for further reading. Generally, writing a will is very important since nobody knows when death will occur hence the importance of preparing in advance.