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Understanding a Will as a Beneficiary

To most persons, thinking about death is an abomination. Death is however a reality of life that must be accepted. This is why you are advised to write a will early in life. To write a will, start by identifying your dependents. Dependents can be different people ranging from family members to friends. 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 is named as a successor of an estate, investment or even insurance policy. If the beneficiary is a minor upon death of the will owner, he or she will inherit the property upon attaining legal age. 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. Life brings about many changes hence the need to review a will regularly. 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.

Beneficiaries fall in different categories. First, we have the irrevocable beneficiary. Get legal counsel and financial advice before settling on an irrevocable beneficiary. Irrevocable beneficiaries are very difficult to change. Then there are revocable beneficiaries. This category of beneficiaries can be altered. Things like marriage or divorce can call for alteration of beneficiaries.

A primary beneficiary is defined as the person who is in line directly to receive your assets upon your death. This person is of interest to most insurance companies. Then there is a contingent or alternate beneficiary. 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. These are persons named to receive specific items from the benefactor. Case in point is a grandmother gifting a specific jewel to a grandchild.

It is also possible to name alternate residuary benefactors for residuary benefactors. There are many people who can be named as beneficiaries in a will. The spouse is the most preferred person by most people. After naming the spouse, it is good to name the alternate beneficiary. Children would be the ideal alternate beneficiaries after the spouse is named as the primary beneficiary. Most people do however name children as primary beneficiaries.

Friends and charities can also be named as beneficiaries. 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.

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