Understanding a Will as a Beneficiary
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. 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. Sometimes the beneficiary is a minor which means that they will wait to reach legal age to get the benefits in the will. It is important for the benefactor to let the beneficiaries know about 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. Consider having alternate beneficiaries in the will. In case the primary beneficiary in the will dies, the secondary one takes over. Ensure that your will is updated at all times.
There are several categories of beneficiaries. The first one is the irrevocable beneficiary. Seek advice of your attorney and financial advisor before naming irrevocable beneficiaries. Irrevocable beneficiaries are very difficult to change. Then there are revocable beneficiaries. 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. Most insurance companies want to know the primary beneficiary. The other group of beneficiaries is the contingent or alternate beneficiary. If the primary beneficiary dies before inheriting the property, the contingent beneficiary gets the assets. Another group is that of residuary beneficiaries. These are named to get very particular items from the benefactors. An example is when a grandmother assigns a particular jewel to a grandchild.
Residuary benefactors can also have alternate benefactors under them. A will can name many people. 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. Most people do however name children as 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.