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Beneficiaries of Wills – What to Know
People fear talking about death. Death is however a reality of life that must be accepted. 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. 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 successor to an estate or other assets is the beneficiary. In case the beneficiary is a minor, he or she will wait to reach legal age to inherit the property. The benefactor should tell the beneficiaries about the will early. This will eradicate confusion when you die.
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. If the primary beneficiary dies, the secondary one takes over. Ensure that your will is updated at all times.
There are different types of beneficiaries to be considered as you write your will. First, we have the irrevocable beneficiary. Get legal counsel and financial advice before settling on an irrevocable beneficiary. Irrevocable beneficiaries are very difficult to change. On the other hand, 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. Most insurance companies want to know the primary beneficiary. Contingent or alternate beneficiaries form another group of beneficiaries. In case there is death of the primary beneficiary, then the contingent beneficiary stands to inherit the properties. Others are residuary beneficiaries. These are named to get very particular items from the benefactors. For instance, a grandmother can name a grandchild to receive her special ornaments upon her death.
It is also possible to name alternate residuary benefactors for residuary benefactors. There are many people who can be named as beneficiaries in a will. A lot of people prefer to have their spouses as beneficiaries. However, it is important to name an alternate beneficiary after the spouse. Children would be the ideal alternate beneficiaries after the spouse is named as the primary beneficiary. There are many people who prefer to have children as primary beneficiaries.
Friends and charities can also be named as beneficiaries. It is a personal choice. 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.