Beneficiaries of Wills – What to Know
People fear talking about death. It is however impossible to ignore death as a reality of life. It is for this reason that writing a will is important. To write a will, start by identifying your dependents. There are many people who can be the dependents. Of importance is to ensure they know in advance.
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. 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. There are life changes that can lead you to change the content of the will. Consider having alternate beneficiaries in the will. This means that if the primary beneficiary was to die, the secondary ones will inherit your assets automatically. 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. Get legal counsel and financial advice before settling on an irrevocable beneficiary. It is very difficult to change the identified irrevocable beneficiaries. The second type is the revocable beneficiary. This one can be changed in case something happens in life. Beneficiaries can be altered due to things like marriage or divorce.
A primary beneficiary is defined as the person who is in line directly to receive your assets upon your death. This person is of interest to most insurance companies. The other group of beneficiaries is the contingent or alternate beneficiary. In case there is death of the primary beneficiary, then the contingent beneficiary stands to inherit the properties. Apart from the primary and the alternate, there are also 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.
Point to remember is that residuary beneficiaries can also have alternate residuary beneficiaries in place. A will can name many people. A lot of people prefer to have their spouses as beneficiaries. The alternate beneficiary should be named after naming 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.
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. In conclusion, it is important to write your will early since we never know what will happen next in life.