If you’re looking to understand the legal concept of residuary estate, you’ve come to the right place. Residuary estate is an important legal concept in estate planning and understanding it is key to successful estate planning and protecting what you leave behind. In this article we’ll explain what residuary estate means in clear and simple terms.
What Is a Residuary Estate?
A residuary estate is the remaining property or assets of a decedent. It is the remaining property after the payment of all debts, taxes, and other expenses, as well as the fulfillment of any applicable bequests, such as family members, friends, and charities provided for in the decedent’s will. It’s important to note that residuary estates are not limited to what is stated in the will. Any property not excluded by contract or bequest can be considered part of the residuary estate.
What Is the Purpose of a Residuary Estate?
The purpose of a residuary estate is to ensure that a decedent’s wishes are carried out as close as possible to what was stated in the will. It ensures that anything not accounted for in the will is distributed according to applicable law. It also allows for the wishes of the decedent to be carried out with a minimum of legal difficulty and expense.
How Is a Residuary Estate Distributed?
The specific way a residuary estate is distributed will depend on the laws of the jurisdiction. Generally speaking, however, whatever remains after the payment of debts, taxes, expenses, and applicable bequests will be distributed according to the law for intestate succession if there are no other instructions in the decedent’s will. Intestate succession will determine who is entitled to the remaining assets of the decedent and in what percentage.
What Are Some Types of Property That May Be Included in a Residuary Estate?
The types of property that can be included in a residuary estate will vary depending on the jurisdiction and other factors. Most commonly, however, residuary estates will include any real property, money, investments, pensions, life insurance policies, and other personal property that is not otherwise specifically accounted for in the will. In addition, any property that was held in joint tenancy or community property between the decedent and a surviving spouse may be included in the residuary estate as well.
Conclusion: Why Understanding Residuary Estates Is Important for Estate Planning
Understanding residuary estates is key to successful estate planning. It ensures that your wishes are carried out as closely as possible, and that any remaining assets are distributed in accordance with the law. It’s important to consult with an experienced estate planning attorney to make sure you understand the laws of your state before you begin the process. This will ensure that your estate plan is complete and organized and that you are protecting your loved ones from potential legal difficulties or financial burdens after you’re gone.