– Getting Started & Next Steps

Beneficiaries of Wills – What to Know

People fear talking about death. It is however impossible to ignore death as a reality of life. This is why you are advised to write a will early in life. To write a will, start by identifying your dependents. There are many people who can be the dependents. Of importance is to ensure they know in advance.

The definition of a beneficiary is the person who is in line for inheritance upon death of the owner of the will. The beneficiary will end up inheriting the estate stated in the will. 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 way, there will be no confusion one he or she passes on.

A written will should be revisited once in a while. There are life changes that can lead you to change the content of the will. Of importance also is that you should also have alternate or secondary beneficiaries. If the primary beneficiary 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. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. This is because it is very difficult to change these beneficiaries once they have been included in the will. 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.

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. Others are residuary beneficiaries. Residuary beneficiaries get very unique and specific items stated by the benefactor. An example is when a grandmother assigns a particular jewel to a grandchild.

Point to remember is that residuary beneficiaries can also have alternate residuary beneficiaries in place. 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. You make this call. 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.