A "beneficiary" is the person, business, or organization that you want to leave money behind for. A beneficiary can be your wife, children, parent, fiance, or a business, church, etc. When you select a beneficiary you should ask yourself, "If something happens to me, where do I want this money to go." For most people the answer is their spouse. A beneficiary should be the person or organization that will be financially affected if you are no longer in the picture.
What if I want this money to go to my children and they are really young? There are 3 options for this. Option number 1 is to select a relative or person who would agree to take care of your children and name them as the beneficiary. Option number 2 is to name the children directly. In this case if something happens to you, the court will appoint the closest relative to the children and the court will allocate the money to this relative for your children as needed. Option 3 is to set up a trust or will.
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