Legal

Looking On The Bright Side of

A Guide to Will Beneficiaries

Most people do not like thinking about their death. However, this is a reality of life that we cannot wish away. It is for this reason that writing a will is important. 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 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. 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 will eradicate confusion when you die.

Even after writing the will, revisit it regularly. There are life changes that can lead you to change the content of the will. 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 different types of beneficiaries to be considered as you write your will. The first one is the irrevocable beneficiary. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. Irrevocable beneficiaries are very difficult to change. The second type is the revocable beneficiary. It is possible to alter revocable beneficiaries. For instance, factors like marriage or divorce.

The person who is designated to receive property when you die is the primary beneficiary. Insurance companies will always ask for this person first. Then there is a contingent or alternate beneficiary. If the primary beneficiary dies before inheriting the property, the contingent beneficiary gets the assets. Another group is that of 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. 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. Most people do however name children as primary beneficiaries.

Friends and charities can also be named as beneficiaries. It is a personal choice. 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.