Understanding a Will as a Beneficiary
Most people do not like thinking about their 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. Knowing your dependents is the first step in writing the will. There are many people who can be the dependents. It is also important for dependents to understand the will and how to translate its contents.
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 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. 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. Changes in life can necessitate altering the will. Consider having alternate beneficiaries in the will. This means that if the primary beneficiary was to die, the secondary ones will inherit your assets automatically. Always ensure your will documents are up to date.
There are several categories of beneficiaries. First, we have the irrevocable beneficiary. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. Irrevocable beneficiaries are very difficult to change. Then there are revocable beneficiaries. It is possible to alter revocable beneficiaries. For instance, factors like marriage or divorce.
A primary beneficiary is basically the person who receives the money once you die. Most insurance companies want to know the primary beneficiary. Then there is a contingent or alternate beneficiary. This is the alternative beneficiary if the primary beneficiary was to die before getting the inheritance. Apart from the primary and the alternate, there are also 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. People to be named in a will are many. The spouse is the most preferred person by most people. However, it is important to name an alternate beneficiary after the spouse. Children fit this part perfectly. 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. You make this call. More information about wills can be found online for further reading. Generally, writing a will is very important since nobody knows when death will occur hence the importance of preparing in advance.
Cited reference: published here