Legal

Why Aren’t As Bad As You Think

A Guide to Will Beneficiaries

To most persons, thinking about death is an abomination. It is however impossible to ignore death as a reality of life. It is for this reason that writing a will is important. Writing a will starts with naming your dependents. Dependents can be different people ranging from family members to friends. Of importance is to ensure they know in advance.

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. 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 will eradicate confusion when you die.

A written will should be revisited once in a while. There are life changes that can lead you to change the content of the will. Do also have alternate beneficiaries, also called secondary beneficiaries. In case the primary beneficiary in the will dies, the secondary one takes over. Keep your will documents up to date.

There are several categories of beneficiaries. First, we have the irrevocable beneficiary. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. It is very difficult to change the identified irrevocable beneficiaries. Then there are revocable beneficiaries. This category of beneficiaries can be altered. 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. This person is of interest to most insurance companies. Then there is a contingent or alternate beneficiary. This is the alternative beneficiary if the primary beneficiary was to die before getting the inheritance. Others are 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. People to be named in a will are many. The spouse is the most preferred person by most people. However, it is important to name an alternate beneficiary after the spouse. Children fit this part perfectly. Most people do however name children as primary beneficiaries.

It is also possible to have charities and friends as beneficiaries in your will. You make this call. You can get more info about wills and beneficiaries online and grow your knowledge appropriately from this site. In conclusion, it is important to write your will early since we never know what will happen next in life.