Understanding a Will as a Beneficiary
People fear talking about death. However, this is a reality of life that we cannot wish away. 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. 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 avoids confusion upon death.
After writing your will, make it a habit to revisit and review it regularly. Changes in life can necessitate altering the will. Consider having alternate beneficiaries in the will. If the primary beneficiary dies, the secondary one takes over. Keep your will documents up to date.
There are several categories of beneficiaries. First, we have the irrevocable beneficiary. Seek advice of your attorney and financial advisor before naming irrevocable beneficiaries. 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. 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. 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.
Residuary benefactors can also have alternate benefactors under them. There are many people who can be named as beneficiaries in a will. Most people prefer to name their spouses as primary beneficiaries. After naming the spouse, it is good to name the alternate beneficiary. A good choice here would be the children. To many other people, children are 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. In conclusion, it is important to write your will early since we never know what will happen next in life.