Beneficiaries of Wills – What to Know
People fear talking about death. It is however impossible to ignore death as a reality of life. This is why you are advised to write a will early in life. 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.
We're an affiliate
We hope you love the products we recommend! Just so you know, we may collect a share of sales or other compensation from the links on this page. Thank you if you use our links, we really appreciate it!
A beneficiary is the person who is named in a will to benefit from the assets of the person who wrote the will. 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. Do also have alternate beneficiaries, also called secondary beneficiaries. If the primary beneficiary dies, the secondary one takes over. Ensure that your will is updated at all times.
There are several categories of beneficiaries. 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. 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. This person is of interest to most insurance companies. The other group of beneficiaries is the contingent or alternate beneficiary. In case there is death of the primary beneficiary, then the contingent beneficiary stands to inherit the properties. Apart from the primary and the alternate, there are also residuary beneficiaries. Residuary beneficiaries get very unique and specific items stated by the benefactor. Case in point is a grandmother gifting a specific jewel to a grandchild.
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 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. The fact that we never know when death will come to us means that writing a will early is of vital importance.