Will Writing: Residuary Estate Definition

Will Writing:

Residuary Estate Definition

by Dr Edgar Paltzer

WILL WRITING:

RESIDUARY ESTATE DEFINITION

A Last Will & Testament is generally full of legal terms that may sound confusing to some. A will determines how the deceased would like their estate to be divided among their heirs and chosen beneficiaries.

The ‘estate’ refers to the sum total of all assets owned at the time of death and in some jurisdictions lifetime gifts that will be taken into account.

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Calculating Residuary Estate

Residuary Beneficiaries

The term ‘residuary estate’ refers to the assets that are left over to be divided or gifted once the essentials have been paid. These include any inheritance tax due, the cost of the funeral, any debts that need to be paid, and any specific gifts as outlined in the will.

The residuary beneficiary then gets everything left over.

The residuary beneficiary of a will is most often the remaining spouse and descendants. However, more than one residuary beneficiary can be named in the will, along with details of what percentage each should receive.

Specific Gifts When writing a will that details specific gifts (bequests) it needs to be carefully thought out, as these can take precedence over the residuary estate. This means a house you want to leave to your spouse may need to be sold if there are not enough other assets to make the specified gifts.

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You can learn more about prenuptial agreements in estate planning by visiting the blog of Dr Edgar Paltzer.