The Ultimate Guide to
April 10, 2022 Legal
Beneficiaries of Wills – What to Know
People fear talking about death. Death is however a reality of life that must be accepted. It is for this reason that writing a will is important. Writing a will starts with naming your dependents. There are many people who can be the dependents. It is important though to let them know of the contents.
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 avoids confusion upon death.
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. Keep your will documents up to date.
There are several categories of beneficiaries. The first category has irrevocable beneficiaries. 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. It is possible to alter revocable beneficiaries. For instance, factors like marriage or divorce.
A primary beneficiary is basically the person who receives the money once you die. 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. These are named to get very particular items from the benefactors. 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. The spouse is the most preferred person by most people. 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.
Friends and charities can also be named as beneficiaries. You make this call. To get more info and discover more about how to write your will, visit the homepage of a credible website and learn more. In conclusion, it is important to write your will early since we never know what will happen next in life.