What is the Residuary Section?
The Residuary Section acts as a "safety net" for the Will. It covers any assets not specifically listed, such as:
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New properties or savings acquired after the Will is signed.
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Belongings the Testator forgot to list.
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Specific gifts that failed (e.g., the beneficiary passed away before the Testator).
Is it Mandatory?
We highly recommend filling this section even if the client believes they have no leftover assets. This ensures that all unlisted or future assets are distributed to chosen beneficiaries rather than falling under Intestacy Laws (Distribution Act), which causes legal delays.
Who receives the residuary estate?
You can designate one or more beneficiaries to receive the residuary estate. You can also set up contingency plans for who should receive it if your primary beneficiaries are unable to.
Do I need to list every single item in the residuary estate?
No, the residuary clause acts as a catch-all for any assets not specifically gifted. You simply need to specify who should receive whatever is left after all specific gifts and debts are handled.
How To Manage the Residuary Estate
To manage the residuary estate in the Legacy Planner system:
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Navigate to the "Residuary Estate" section
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Designate primary beneficiaries to receive the entire residuary estate or portions of it
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Specify contingent beneficiaries who will inherit if primary beneficiaries are unable to
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Define different scenarios for residuary distribution if needed
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Save your instructions for the distribution
The residuary estate includes any remaining or future assets not specifically gifted to beneficiaries.