Legal

Tips for The Average Joe

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 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 defined as the person named in the will to inherit the property. The successor to an estate or other assets is the beneficiary. 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 avoids confusion upon death.

After writing your will, make it a habit to revisit and review it regularly. 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. This means that if the primary beneficiary was to die, the secondary ones will inherit your assets automatically. Ensure that your will is updated at all times.

There are different types of beneficiaries to be considered as you write your will. The first category has irrevocable beneficiaries. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. It is very difficult to change the identified irrevocable beneficiaries. The second type is the revocable beneficiary. This category of beneficiaries can be altered. 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. This person is of interest to most insurance companies. The other group of beneficiaries is the contingent or alternate beneficiary. This is the alternative beneficiary if the primary beneficiary was to die before getting the inheritance. Another group is that of 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.

Point to remember is that residuary beneficiaries can also have alternate residuary beneficiaries in place. A will can name many people. A lot of people prefer to have their spouses as beneficiaries. However, it is important to name an alternate beneficiary after 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.

It is also possible to have charities and friends as beneficiaries in your will. These are just life choices. You can get more info about wills and beneficiaries online and grow your knowledge appropriately from this site. Generally, writing a will is very important since nobody knows when death will occur hence the importance of preparing in advance.