A Guide to Will Beneficiaries
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. 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 successor to an estate or other assets is the beneficiary. In case the beneficiary is a minor, he or she will wait to reach legal age to inherit the property. The benefactor should tell the beneficiaries about the will early. This will eradicate confusion when you die.
After writing your will, make it a habit to revisit and review it regularly. 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. Always ensure your will documents are up to date.
There are different types of beneficiaries to be considered as you write your will. The first category has irrevocable beneficiaries. Get legal counsel and financial advice 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. Things like marriage or divorce can call for alteration of beneficiaries.
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. This is the alternative beneficiary if the primary beneficiary was to die before getting the inheritance. Another group is that of residuary beneficiaries. These are persons named to receive specific items from the benefactor. An example is when a grandmother assigns a particular jewel to a grandchild.
It is also possible to name alternate residuary benefactors for residuary benefactors. There are many people who can be named as beneficiaries in a will. The spouse is the most preferred person by most people. 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. Most people do however name children as 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.