There are a number of ways to divide your property and assets after your death, and a number of people and organizations to divide them between. Below are the most common types of beneficiaries named in
Wills.
- Spouse: Spouses are the most common beneficiaries designated in a Will. In most states, it’s actually against the law to try to disinherit your spouse upon your death. You may wish to leave everything to your spouse, but you should also consider how well your spouse can manage finances, or provide for other dependents.
- Children: While it’s common to leave your assets to your spouse with the expectation that they’ll provide for your children, you may wish to create special provisions for your children, in case something happens to your spouse. This is especially true if you or your spouse have children from another marriage.
- Other Family Members: In some cases it may be desirable to provide for siblings and elderly parents. In other cases, nieces and nephews may be appropriate choices.
- Friends: Friends, particularly close friends, may be more important to you than family members, and can be appropriate beneficiary choices.
- Charities: Charitable organizations provide important services, and many depend on gifts from estates as an important funding source. Leaving a bequest to one or more appropriate charities can help provide important services and benefits to your community and/or promote values that are important to you, and certainly are appropriate beneficiary choices. In addition, tax laws encourage charitable gifting, and as a result, significant income tax and estate tax savings can be achieved through charitable gifting.
- Contingent Beneficiaries: ?You should provide for the possibility that your first choice as a beneficiary will not survive you. You can name a contingent beneficiary to receive your assets in the event your first choice is unable to accept your bequest. You should provide for enough layers of contingent beneficiaries to reasonably assure yourself that beneficiaries will be available to receive the assets of your estate.
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Laws on this topic may vary from state to state.
This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.
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