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. This is why you are advised to write a will early in life. Writing a will starts with naming your dependents. There are many people who can be the dependents. It is also important for dependents to understand the will and how to translate its contents.
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. 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 will eradicate confusion when you die.
After writing your will, make it a habit to revisit and review it regularly. Changes in life can necessitate altering the will. Of importance also is that you should also have alternate or secondary beneficiaries. 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. This is because it is very difficult to change these beneficiaries once they have been included in the will. Then there are revocable beneficiaries. This category of beneficiaries can be altered. Things like marriage or divorce can call for alteration of beneficiaries.
A primary beneficiary is basically the person who receives the money once you die. 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. Others are residuary beneficiaries. These are persons named to receive specific items from the benefactor. For instance, a grandmother can name a grandchild to receive her special ornaments upon her death.
Point to remember is that residuary beneficiaries can also have alternate residuary beneficiaries in place. People to be named in a will are many. Most people prefer to name their spouses as primary beneficiaries. The alternate beneficiary should be named after naming the spouse. Children fit this part perfectly. 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. The fact that we never know when death will come to us means that writing a will early is of vital importance.