A Guide to Will Beneficiaries
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. To write a will, start by identifying your dependents. 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 defined as the person named in the will to inherit the property. 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. It is important for the benefactor to let the beneficiaries know about 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. Life brings about many changes hence the need to review a will regularly. Of importance also is that you should also have alternate or secondary beneficiaries. In case the primary beneficiary in the will dies, the secondary one takes over. Ensure that your will is updated at all times.
There are several categories of beneficiaries. First, we have the irrevocable beneficiary. Seek advice of your attorney and financial advisor before naming irrevocable beneficiaries. 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. 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. Most insurance companies want to know the primary beneficiary. Contingent or alternate beneficiaries form another group of beneficiaries. 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. 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 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.
There are special cases where people name friends or charities as beneficiaries to their assets. These are just life choices. 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.