Beneficiaries of Wills – What to Know

Most people do not like thinking about their death. However, this is a reality of life that we cannot wish away. This is the reason why it is important to write a will so that your dependents can be comfortable when you leave this world. To write a will, start by identifying your dependents. Very many different people 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. The benefactor should tell the beneficiaries about the will early. This avoids confusion upon death.

Even after writing the will, revisit 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. This means that if the primary beneficiary was to die, the secondary ones will inherit your assets automatically. Keep your will documents up to date.

Beneficiaries fall in different categories. The first one is the irrevocable beneficiary. Seek advice of your attorney and financial advisor before naming irrevocable beneficiaries. It is very difficult to change the identified irrevocable beneficiaries. On the other hand, 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 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. 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.

Residuary benefactors can also have alternate benefactors under them. There are many people who can be named as beneficiaries in a will. Most people prefer to name their spouses as primary beneficiaries. The alternate beneficiary should be named after naming the spouse. A good choice here would be the children. There are many people who prefer to have children as primary beneficiaries.

There are special cases where people name friends or charities as beneficiaries to their assets. It is a personal choice. More information about wills can be found online for further reading. Generally, writing a will is very important since nobody knows when death will occur hence the importance of preparing in advance.