Distributing Your Remaining Assets: How Residuary Estates Work
DISTRIBUTING YOUR REMAINING ASSETS: HOW RESIDUARY ESTATES WORK
When creating or administering a will, you may come across the term "residuary estate." This refers to the assets left in an estate after all other gifts and bequests have been allocated. Understanding residuary estates can help ensure your remaining assets are distributed as intended.
When creating or administering a will, you may come across the term "residuary estate." This refers to the assets left in an estate after all other gifts and bequests have been allocated. Understanding residuary estates can help ensure your remaining assets are distributed as intended.
Defining the Residuary Estate
After any specific personal items or financial gifts are gifted per the will, the leftovers comprise the residuary estate. This includes assets not covered by specific bequests, newly acquired assets since writing the will, and gifts intended for beneficiaries who passed before the will-maker.
After any specific personal items or financial gifts are gifted per the will, the leftovers comprise the residuary estate. This includes assets not covered by specific bequests, newly acquired assets since writing the will, and gifts intended for beneficiaries who passed before the will-maker.
Nominating Beneficiaries
Carefully nominate primary and alternative residuary beneficiaries in your will, just as you would for particular bequests.
Carefully nominate primary and alternative residuary beneficiaries in your will, just as you would for particular bequests.
Consequences of Omitting a Residual Clause
Without a residuary clause, any unintended oversights will be distributed under intestacy laws, which may go against your wishes.
Without a residuary clause, any unintended oversights will be distributed under intestacy laws, which may go against your wishes.
Key Takeaways
Taking the time to consider your residuary estate and plan for it in your will is a crucial step in ensuring that your assets are distributed exactly as you intend.
Taking the time to consider your residuary estate and plan for it in your will is a crucial step in ensuring that your assets are distributed exactly as you intend.
For more information on wills and estate planning, reach out to Funera Sydney. Committed to supporting you through every stage of life, including making sure your assets are distributed according to your wishes.
This article does not constitute legal advice. It is advisable to consult with a solicitor or accountant for tailored guidance regarding your individual legal or financial circumstances.