To most persons, thinking about death is an abomination. It is however impossible to ignore death as a reality of life. This is the reason why it is important to write a will so that your dependents can be comfortable when you leave this world. Writing a will starts with naming your dependents. There are many people who can be the dependents. Of importance is to ensure they know in advance.
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. In case the beneficiary is a minor, he or she will wait to reach legal age to inherit the property. As the benefactor, let the beneficiaries be aware of 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. 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. 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. First, we have the irrevocable beneficiary. Seek advice of your attorney and financial advisor before naming irrevocable beneficiaries. This is because it is very difficult to change these beneficiaries once they have been included in the will. The second type is the revocable beneficiary. This one can be changed in case something happens in life. 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. Insurance companies will always ask for this person first. 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. Others are 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.
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. However, it is important to name an alternate beneficiary after the spouse. A good choice here would be the children. There are many people who prefer to have children as primary beneficiaries.
It is also possible to have charities and friends as beneficiaries in your will. It is a personal choice. You can get more info about wills and beneficiaries online and grow your knowledge appropriately from this site. In conclusion, it is important to write your will early since we never know what will happen next in life.