There are a few types of beneficiaries that are common in most estate plans. When planning an estate, you can list anyone you want as a beneficiary. However, keep in mind that beneficiaries can come with some complexities. For instance, a minor listed as a beneficiary will require adding guardians to the estate plan. In addition, if you name an elderly person as a beneficiary, naming an alternate beneficiary or two may be wise. So, certain types of beneficiaries can present some complexities by expanding the estate plan.

Common Types of Beneficiaries in an Estate

The types of beneficiaries that are customary in estate plans are as follows:

• Primary Beneficiaries: Beneficiaries you leave specific gifts of property to.
• Alternate Beneficiaries: Beneficiaries named to receive gifts of property if the primary beneficiary can’t receive them.
• Life Estate Beneficiaries: Beneficiaries given rights to use the property during their life but never become legal owners of the property.
• Final Beneficiaries: Beneficiaries named to inherit property after a life estate beneficiary dies.
• Residuary Beneficiaries: Beneficiaries named to receive property left in a will or trust that is not specifically left to other beneficiaries.

Conclusion

Careful planning and life circumstances will dictate what type of beneficiary you will use to achieve the property distribution you wish upon your death. If you feel that circumstances in your life will make your estate plan complicated, then you should hire an estate attorney to help plan your estate.

Recommended Reading:

Plan Your Estate– Plan Your Estate will go into more detail about beneficiary options for your specific estate plan.

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