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.
Residuaries Explanation
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All my residue of my movable and immovable whatsoever and wheresoever situation ("the Residuary Estate"), which I owned or to which I am entitled to either at law or in equity or over which I have a power of appointment of disposition by will at the time of my death and including any reversionary interest in any of my assets or properties failing unto my estate after my death to my beneficiary(ies) named below:
First Choice Beneficiaries
**Explanation: **
Balance of Estate: After all debts, expenses, and any specific gifts in the Will are settled, whatever assets are left (such as money, property, car, shares, etc.) will be given to the beneficiaries listed under “First Choice Beneficiaries.” -
If I and any beneficiary die simultaneously or in circumstances making it difficult to determine the order of death, it shall be presumed that I predeceased the beneficiary unless otherwise required by law.
Explanation:
If Death Happens at the Same Time: If both the Will maker and a beneficiary pass away at the same time, or no one can tell who passed away first, the law will decide based on a legal assumption to determine who should inherit.
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If any beneficiary challenges or contests this will, they shall forfeit their entitlement to any portion of my estate, and their share shall be distributed as if they had predeceased me.
Explanation:
If Someone Challenges the Will: If a beneficiary disputes or contests the Will, they may lose their share of the inheritance. Their portion will then be divided among the remaining eligible beneficiaries.