The Essentials of – 101

A Guide to Will Beneficiaries

Most people do not like thinking about their death. Death is however a reality of life that must be accepted. It is for this reason that writing a will is important. Knowing your dependents is the first step in writing the will. There are many people who can be the dependents. It is important though to let them know of the contents.

A beneficiary is defined as the person named in the will to inherit the property. 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. Changes in life can necessitate altering the will. 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. Keep your will documents up to date.

Beneficiaries fall in different categories. The first category has irrevocable beneficiaries. Seek advice of your attorney and financial advisor before naming irrevocable beneficiaries. 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. Insurance companies will always ask for this person first. 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. 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.

Residuary benefactors can also have alternate benefactors under them. A will can name many people. A lot of people prefer to have their spouses as beneficiaries. The alternate beneficiary should be named after naming the spouse. 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. These are just life choices. 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.

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