People fear talking about death. It is however impossible to ignore death as a reality of life. This is why you are advised to write a will early in life. Writing a will starts with naming your dependents. Dependents can be different people ranging from family members to friends. 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. 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. Consider having alternate beneficiaries in the will. In case the primary beneficiary in the will dies, the secondary one takes over. Keep your will documents up to date.
Beneficiaries fall in different categories. First, we have the irrevocable beneficiary. Consult your attorney and financial advisor before settling on an irrevocable beneficiary. This is because it is very difficult to change these beneficiaries once they have been included in the will. On the other hand, 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. This person is of interest to most insurance companies. Contingent or alternate beneficiaries form another group of beneficiaries. If the primary beneficiary dies before inheriting the property, the contingent beneficiary gets the assets. Apart from the primary and the alternate, there are also 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.
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. 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.
It is also possible to have charities and friends as beneficiaries in your will. These are just life choices. 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.