Beneficiaries of Wills – What to Know
To most persons, thinking about death is an abomination. Death is however a reality of life that must be accepted. This is the reason why it is important to write a will so that your dependents can be comfortable when you leave this world. 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 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 way, there will be no confusion one he or she passes on.
Even after writing the will, revisit it regularly. Changes in life can necessitate altering the will. Do also have alternate beneficiaries, also called secondary beneficiaries. 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.
Beneficiaries fall in different categories. The first category has irrevocable beneficiaries. Get legal counsel and financial advice before settling on an irrevocable beneficiary. It is very difficult to change the identified irrevocable beneficiaries. On the other hand, there are revocable beneficiaries. This category of beneficiaries can be altered. 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. Most insurance companies want to know the primary beneficiary. The other group of beneficiaries is the contingent or alternate beneficiary. If the primary beneficiary dies before inheriting the property, the contingent beneficiary gets the assets. Others are 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.
It is also possible to name alternate residuary benefactors for residuary benefactors. People to be named in a will are many. The spouse is the most preferred person by most people. After naming the spouse, it is good to name the alternate beneficiary. A good choice here would be the children. Most people do however name 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.
Quotes: official site