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A Guide to Will Beneficiaries

To most persons, thinking about death is an abomination. 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. Knowing your dependents is the first step in writing the will. Very many different people can be the dependents. It is important though to let them know of the contents.

The definition of a beneficiary is the person who is in line for inheritance upon death of the owner of the will. The successor to an estate or other assets is the beneficiary. 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 will eradicate confusion when you die.

Even after writing the will, revisit it regularly. Changes in life can necessitate altering the will. Of importance also is that you should also have alternate or secondary beneficiaries. If the primary beneficiary dies, the secondary one takes over. Ensure that your will is updated at all times.

Beneficiaries fall in different categories. 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. 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. 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 persons named to receive specific items from the benefactor. An example is when a grandmother assigns a particular jewel to a grandchild.

Residuary benefactors can also have alternate benefactors under them. People to be named in a will are many. The spouse is the most preferred person by most people. The alternate beneficiary should be named after naming 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. It is a personal choice. 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.