Understanding the Wording of Your Will: What is the "Residual Estate"?

Understanding the Wording of Your Will: What is the "Residual Estate"?

If you are in the process of creating or reviewing a will, you may come across the term "residual estate" and wonder what it refers to. Understanding the meaning of this term can help you make informed decisions about your estate plan and ensure that your wishes are carried out after you pass away.

What is the Residual Estate?

The residual estate, also known as the residue or remainder of the estate, is the part of your estate that is left over after all debts, taxes, and specific bequests have been paid. Specific bequests are gifts of specific property or money you leave to a named beneficiary in your will.

For example, if you have a will that leaves your house to your spouse and a specific sum of money to each of your children, the residual estate would include any remaining assets not specifically mentioned in the will. These could include savings accounts, stocks, other investments, and personal property like jewelry and artwork.

How is the Residual Estate Distributed?

The residual estate is usually distributed to the beneficiaries named in the will as a group rather than to individual beneficiaries. In other words, the residual estate is treated as a single entity rather than divided into separate gifts for each beneficiary.

The distribution of the residual estate is typically determined by a provision in the will know as the "residuary clause." This clause specifies how the residual estate should be distributed among the beneficiaries. For example, the residuary clause may state that the residual estate should be divided equally among the beneficiaries or that a certain percentage should be given to each beneficiary.

If you do not include a residuary clause in your will, the residual estate will be distributed according to the laws of intestacy in your state. Intestacy laws outline the default rules for distributing an estate when a person dies without a will, and these rules vary from state to state.

Considerations for Your Estate Plan

It's important to carefully consider how you want your residual estate to be distributed, as it can be a significant portion of your overall estate. You should also consider who you want to be the beneficiaries of your residual estate and if you wish to leave specific gifts to particular individuals or organizations.

Working with an attorney to create an estate plan that reflects your wishes and meets your financial goals is a good idea. They can help you understand the wording of your will and ensure that it is properly executed.

In conclusion, the residual estate is the portion of your estate left over after specific bequests and debts have been paid. It is typically distributed according to the residuary clause in your will or, if one is not included, according to state intestacy laws. Understanding the meaning of the residual estate and how it is distributed can help you make informed decisions about your estate plan and ensure that your wishes are carried out after you pass away.

Will and Estate Attorney Free Consultation In Utah

If you need legal help, call this law firm and talk with our experienced attorneys about will and estate for a FREE consultation.

We help you with Estate Planning, Wills, Trusts, Power of Attorney, Health Care Directive, Estate Administration, Probate and More

Parklin Law - Estate Planning

5772 W 8030 S, # N206

West Jordan UT 84081

(801) 618-0699

https://parkin-law.business.site/

40.605070, -112.027530

Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.

Location: West Jordan, UT, USA

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