A beneficiary is any person or organization that has been chosen either by the decedent or the court to receive the decedent’s assets after their death. While the term beneficiary is a broad term, it can mean that someone is in line to inherit from a trust or estate just as much as it refers to someone who will receive the life insurance policy of someone who passed on. Ultimately, a beneficiary is a person or charity organization that is set to inherit an asset from the decedent. If you have been named as a beneficiary or want help choosing beneficiaries for your estate plan, now is the time to contact our team at W.B. Moore Law! Our Windsor, CO estate lawyer is happy to guide you through the estate planning creation process.
Types Of Beneficiaries
Beneficiaries often fall under one of two categories, either primary beneficiaries (vested beneficiaries) or secondary beneficiaries (contingent beneficiaries). The type of beneficiary you are will determine your rights and ability to enforce them. As a primary beneficiary, you have a present interest in a trust or estate. In other words, you are set to receive the distributions as soon as administration is complete. Primary beneficiaries are guaranteed a distribution unless their interest has been successfully contested by another party who has financial stake in the outcome.
By comparison, a contingent beneficiary can be described as someone who has potential future interest in the trust or estate. Contingent beneficiaries must meet certain conditions to receive their distribution and this is not guaranteed. They have a right to contest a will or trust and petition the court to have a trustee or executor/administrator removed.
Conflicts Among Beneficiaries
It is not uncommon for beneficiaries to have a dispute. For instance, there may be a conflict if a contingent beneficiary suspects that the primary beneficiary, trustee, or executor/administrator is squandering or mismanaging assets of the decedent that are supposed to be transferred to them if and when conditions are met and a portion of the assets remain. Contingent beneficiaries have the right to safeguard their potential interest in the trust or estate, just as much as primary beneficiaries have the right to defend their interest. If you need assistance resolving a dispute between beneficiaries or others involved, contact our dedicated estate attorney today.
W.B. Moore Law
Most people choose their closest loved ones and charity organizations they are passionate about as their beneficiaries. Who you choose as a primary and secondary beneficiary is a choice that only you can make. There is the chance that a dispute could occur later on, but our team can guide you through the estate planning process while considering family dynamics if that is a concern of yours. Our CO estate attorney knows that creating an estate plan can come along with certain nuances and assessing interlinking relationships. We know that a smooth distribution of assets and preventing conflict between beneficiaries is probably a top priority. Contact W.B. Moore Law so that we can offer support and wisdom when writing your estate plan!
Whether you are in need of help regarding a trust, will, power of attorney, or other document, our team at W.B. Moore Law is experienced in all things estate planning. Our Windsor, CO estate lawyer can assist you with any matter pertaining to planning for your future. We can offer support as you develop an estate plan that addresses your concerns and sets up your beneficiaries to receive their inheritance smoothly and effectively. Many people feel at ease knowing that they have established legally-binding documents in which their wishes will be carried out. An estate plan can be a great tool for securing your legacy to future generations. If you would like to get started today, we are ready to help!
How Estate Planning Works For You
There are many benefits to having an estate plan. It is important for every person to have an estate plan, regardless of their financial status or age. An estate plan is a series of legal documents that provide instructions for how you want your assets to be handled after you pass on. You can also make plans for what you want to happen in case you were to ever be incapacitated and unable to make decisions for yourself. As our knowledgeable estate attorney explains, here are common benefits to having an estate plan:
- You can choose a guardian for your minor children in case you and the other parent cannot take care of them.
- Your assets are protected and will be given to the people you choose, instead of the court doing this for you.
- You avoid probate, which can be a prolonged and expensive process of settling the estate of a deceased person.
- Taxes are minimized so that there is more available to be distributed to your beneficiaries.
- There is a plan in place in case you become incapacitated. Your estate plan can include preferences for how you want to be taken care of if you sustain an injury or illness where you cannot communicate or make a choice.
- You can choose a power of attorney, which is someone who will make decisions for you financially or health-wise in specific situations.
- Having an estate plan can reduce the chances of family disputes of property and assets.
- If you have a charity organization you care about you can designate for them to receive certain assets after you pass on.
- You can write what you want your funeral arrangements to be, which ensures that your funeral is carried out how you would want.
- It ensures your legacy is handled exactly how you prefer after your departure.
W.B. Moore Law
Having an estate plan can make all the difference in how your legacy is distributed to your closest friends and family, in addition to any charity organizations you care about. Our CO estate attorney is happy to assist you with any and all tasks related to estate planning. At W.B. Moore Law, we understand the peace of mind that can be achieved when someone completes their estate plan. If you would like to get started today, we are ready to help. Consider reaching out at your next convenience to begin!