5 MINUTES READ ON THE ESSENCE OF RESIDUARY ESTATES IN WILLS
At Funera Sydney, we understand that the world of wills and estates can often seem complex and mystifying. For those navigating this territory, the term "residuary estate" might raise questions and curiosity. Whether you're in the midst of drafting your will or have assumed the role of an executor in administering a deceased estate, we're here to provide clarity and guidance. In this article, we'll delve into the world of residuary estates and shed light on how they can play a pivotal role in your will.
At Funera Sydney, we understand that the world of wills and estates can often seem complex and mystifying. For those navigating this territory, the term "residuary estate" might raise questions and curiosity. Whether you're in the midst of drafting your will or have assumed the role of an executor in administering a deceased estate, we're here to provide clarity and guidance. In this article, we'll delve into the world of residuary estates and shed light on how they can play a pivotal role in your will.
DEMYSTIFYING THE RESIDUARY ESTATE
In simple terms, a residuary estate is what remains in a deceased person's estate after specific gifts have been allocated to beneficiaries in accordance with the terms of the will. These specific gifts can encompass a wide array of assets, from cherished heirlooms like a grandmother's jewellery to practical possessions such as a car bestowed upon a beloved brother. The will-maker may also choose to allocate financial gifts to charitable organisations close to their heart. After these allocated gifts have found their rightful recipients, what lingers comprises the residuary estate. It is this remainder that a beneficiary will inherit. The residuary estate isn't confined to pre-existing assets; it also includes any items or assets acquired, inherited, or received by the deceased since the creation of the will. If these items haven't been previously bequeathed to specific beneficiaries, they fall under the purview of the residuary estate.
In simple terms, a residuary estate is what remains in a deceased person's estate after specific gifts have been allocated to beneficiaries in accordance with the terms of the will. These specific gifts can encompass a wide array of assets, from cherished heirlooms like a grandmother's jewellery to practical possessions such as a car bestowed upon a beloved brother. The will-maker may also choose to allocate financial gifts to charitable organisations close to their heart. After these allocated gifts have found their rightful recipients, what lingers comprises the residuary estate. It is this remainder that a beneficiary will inherit. The residuary estate isn't confined to pre-existing assets; it also includes any items or assets acquired, inherited, or received by the deceased since the creation of the will. If these items haven't been previously bequeathed to specific beneficiaries, they fall under the purview of the residuary estate.
NOMINATING BENEFICIARIES FOR THE RESIDUARY ESTATE
When crafting your will, it's customary to nominate your spouse or a close family member as the primary recipient of your residuary estate. Prudent planning dictates that you also name an alternative beneficiary in case the primary one predeceases you. You can even choose to designate multiple beneficiaries and specify the percentage of the estate that each shall receive.
When crafting your will, it's customary to nominate your spouse or a close family member as the primary recipient of your residuary estate. Prudent planning dictates that you also name an alternative beneficiary in case the primary one predeceases you. You can even choose to designate multiple beneficiaries and specify the percentage of the estate that each shall receive.
A SAMPLE RESIDUARY ESTATE CLAUSE
Here's an illustrative example of a residuary estate clause that you might consider incorporating into your will: *"To Sam Jones, 13 Imaginary Way, Darlinghurst, New South Wales, 2010, I give the residue of my estate not otherwise disposed of by this Will."* Always remember to appoint an alternate beneficiary, along with their identification details, in the event that the initial recipient is unable to inherit the residuary estate.
Here's an illustrative example of a residuary estate clause that you might consider incorporating into your will: *"To Sam Jones, 13 Imaginary Way, Darlinghurst, New South Wales, 2010, I give the residue of my estate not otherwise disposed of by this Will."* Always remember to appoint an alternate beneficiary, along with their identification details, in the event that the initial recipient is unable to inherit the residuary estate.
THE SIGNIFICANCE OF NOMINATION
Failing to designate a beneficiary for your residuary estate can lead to legal complexities and potential disputes. In the absence of a specified recipient, the deceased's estate may be deemed as having died "partially intestate." This entails the distribution of overlooked assets in accordance with the legal formula for intestate succession. To safeguard against such uncertainties, many individuals opt to include a "residuary clause" in their wills. This provision ensures that any unclaimed or undisposed assets are directed to the chosen individual or organisation, thereby averting potential intestacy complications.
Failing to designate a beneficiary for your residuary estate can lead to legal complexities and potential disputes. In the absence of a specified recipient, the deceased's estate may be deemed as having died "partially intestate." This entails the distribution of overlooked assets in accordance with the legal formula for intestate succession. To safeguard against such uncertainties, many individuals opt to include a "residuary clause" in their wills. This provision ensures that any unclaimed or undisposed assets are directed to the chosen individual or organisation, thereby averting potential intestacy complications.
CONCLUDING REMARKS
We hope this article has demystified the concept of bequests and deceased estates for those of you who are either executors or are in the process of drafting your will. At Funera Sydney, we believe that understanding this vital aspect of estate planning is empowering. Please be aware that the content provided in this article is not intended as legal advice. For personalised guidance tailored to your specific financial or personal circumstances, it is advisable to consult with your solicitor or accountant. Planning your legacy is an important aspect of life, and we are here to support you every step of the way. If you have any questions or require further assistance, don't hesitate to get in touch.
We hope this article has demystified the concept of bequests and deceased estates for those of you who are either executors or are in the process of drafting your will. At Funera Sydney, we believe that understanding this vital aspect of estate planning is empowering. Please be aware that the content provided in this article is not intended as legal advice. For personalised guidance tailored to your specific financial or personal circumstances, it is advisable to consult with your solicitor or accountant. Planning your legacy is an important aspect of life, and we are here to support you every step of the way. If you have any questions or require further assistance, don't hesitate to get in touch.