Beneficiaries of Wills – What to Know
To most persons, thinking about death is an abomination. However, this is a reality of life that we cannot wish away. It is for this reason that writing a will is important. Writing a will starts with naming your dependents. Very many different people can be the dependents. 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 way, there will be no confusion one he or she passes on.
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. 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. 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. It is possible to alter revocable beneficiaries. Beneficiaries can be altered due to things 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. 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. An example is when a grandmother assigns a particular jewel to a grandchild.
Point to remember is that residuary beneficiaries can also have alternate residuary beneficiaries in place. There are many people who can be named as beneficiaries in a will. A lot of people prefer to have their spouses as beneficiaries. However, it is important to name an alternate beneficiary after the spouse. 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. It is a personal choice. To get more info and discover more about how to write your will, visit the homepage of a credible website and learn more. In conclusion, it is important to write your will early since we never know what will happen next in life.
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