Understanding a Will as a Beneficiary
People fear talking about death. Death is however a reality of life that must be accepted. This is why you are advised to write a will early in life. Knowing your dependents is the first step in writing the will. Very many different people can be the dependents. It is also important for dependents to understand the will and how to translate its contents.
A beneficiary is defined as the person named in the will to inherit the property. The beneficiary is named as a successor of an estate, investment or even insurance policy. Sometimes the beneficiary is a minor which means that they will wait to reach legal age to get the benefits in the will. The benefactor should tell the beneficiaries about 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. Keep your will documents up to date.
There are different types of beneficiaries to be considered as you write your will. The first one is the irrevocable beneficiary. Seek advice of your attorney and financial advisor before naming irrevocable beneficiaries. It is very difficult to change the identified irrevocable beneficiaries. 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. Most insurance companies want to know the primary beneficiary. The other group of beneficiaries is the 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. 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. The spouse is the most preferred person by most people. The alternate beneficiary should be named after naming the spouse. A good choice here would be the children. To many other people, children are primary beneficiaries.
Friends and charities can also be named as beneficiaries. 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.
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