Residuary estate refers to the collection of remaining assets you didn’t specifically bequeathUnclaimed property without a beneficiary also becomes residue of the estateAdd a residuary clause to a will to give away this remainder and prevent dying in partial intestacy
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What is the definition of residue in a will?
Definition: Residue. The residue of an estate (sometimes called 渁ll the rest, residue, and remainder?of an estate) is the aggregate of all of the probate assets of the estate which have not otherwise been paid toward debts, expenses, or taxes of the estate, or given away in the testator will via specific gifts, demonstrative gifts,…
How does residuary estate distribution happen?
Residuary estate distribution always happens after specific gifts are given out. This means that it really important to make sure the numbers add up. Giving out large specific gifts can have unintended consequences. For example:
Is a bank account part of a residuary estate?
As the funds within this bank account are a specific gift, they would not form part of the residuary Estate. It is the Executor obligation to ensure that all of the outstanding liabilities, expenses and administration fees have been paid before the residue of the Estate is distributed.
What is a gift of residue?
Gifts of all or part of the residue are general in nature. In practical terms it means that those beneficiaries entitled to a gift out of the residue won be able to take it until all the debts and estate matters mentioned above have been finalised as part of the administration of the estate; and the amount of residue ascertained.