Smart Ideas: Revisited

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. This is the reason why it is important to write a will so that your dependents can be comfortable when you leave this world. Knowing your dependents is the first step in writing the will. Dependents can be different people ranging from family members to friends. 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. As the benefactor, let the beneficiaries be aware of the will early. This will eradicate confusion when you die.

After writing your will, make it a habit to revisit and review it regularly. 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. Always ensure your will documents are up to date.

There are different types of beneficiaries to be considered as you write your will. The first one is 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. Things like marriage or divorce can call for alteration of beneficiaries.

The person who is designated to receive property when you die is the primary beneficiary. Most insurance companies want to know the primary beneficiary. Then there is a contingent or alternate beneficiary. In case there is death of the primary beneficiary, then the contingent beneficiary stands to inherit the properties. Another group is that of residuary beneficiaries. These are persons named to receive specific items from the benefactor. For instance, a grandmother can name a grandchild to receive her special ornaments upon her death.

Residuary benefactors can also have alternate benefactors under them. There are many people who can be named as beneficiaries in a will. The spouse is the most preferred person by most people. The alternate beneficiary should be named after naming 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. 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.