To most persons, thinking about death is an abomination. However, this is a reality of life that we cannot wish away. It is for this reason that writing a will is important. To write a will, start by identifying your dependents. Very many different people can be the dependents. Of importance is to ensure they know in advance.
The definition of a beneficiary is the person who is in line for inheritance upon death of the owner of the will. 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. As the benefactor, let the beneficiaries be aware of the will early. This will eradicate confusion when you die.
Even after writing the will, revisit it regularly. Life brings about many changes hence the need to review a will regularly. Do also have alternate beneficiaries, also called secondary beneficiaries. 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.
Beneficiaries fall in different categories. The first category has irrevocable beneficiaries. Get legal counsel and financial advice before settling on an irrevocable beneficiary. It is very difficult to change the identified irrevocable beneficiaries. On the other hand, there are revocable beneficiaries. This category of beneficiaries can be altered. For instance, factors like marriage or divorce.
A primary beneficiary is basically the person who receives the money once you die. This person is of interest to most insurance companies. Contingent or alternate beneficiaries form another group of beneficiaries. 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. Case in point is a grandmother gifting a specific jewel to a grandchild.
Point to remember is that residuary beneficiaries can also have alternate residuary beneficiaries in place. People to be named in a will are many. Most people prefer to name their spouses as primary beneficiaries. After naming the spouse, it is good to name the alternate beneficiary. Children fit this part perfectly. To many other people, children are primary beneficiaries.
There are special cases where people name friends or charities as beneficiaries to their assets. You make this call. To get more info and discover more about how to write your will, visit the homepage of a credible website and learn more. Generally, writing a will is very important since nobody knows when death will occur hence the importance of preparing in advance.
