We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Understanding Residuary Bequest: Key Insights for Estate Planning
Definition & Meaning
A residuary bequest is a provision in a will that designates the remaining assets of an estate after all debts, taxes, and specific gifts have been distributed. This means that any property or assets not explicitly mentioned in the will, or those that cannot be effectively transferred due to issues like void or lapsed legacies, will be included in the residuary bequest. Essentially, it encompasses everything left over after fulfilling other obligations.
Table of content
Legal Use & context
In legal practice, a residuary bequest is commonly used in estate planning and probate law. It is crucial for ensuring that all remaining assets are distributed according to the wishes of the deceased. This term is particularly relevant in civil law, where wills and estates are managed. Individuals can utilize legal templates from US Legal Forms to create wills that include residuary bequests, ensuring their estate is handled according to their preferences.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: If a person's will states that their house and car are to be given to specific individuals, any remaining assets, such as cash or investments, will be allocated as a residuary bequest to other beneficiaries.
Example 2: (hypothetical example) A will specifies that $10,000 is to be given to a charity, and after paying all debts, the remaining estate, including personal items and savings, is designated for the deceased's children as a residuary bequest.
State-by-state differences
Examples of state differences (not exhaustive):
State
Residue Distribution Rules
California
Residue is distributed according to the will's terms unless otherwise stated.
New York
Residue is distributed to the named residuary beneficiaries in the will.
Texas
Residue is divided according to the will or, if none, by state intestacy laws.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Specific Bequest
A gift of a particular item or sum of money.
Specific bequests are limited to designated items, whereas residuary bequests cover all remaining assets.
General Bequest
A gift of a general amount of money or property from the estate.
General bequests are not tied to specific assets, unlike residuary bequests which deal with what's left after specific gifts.
Common misunderstandings
What to do if this term applies to you
If you are creating a will and want to include a residuary bequest, consider using templates from US Legal Forms to ensure your wishes are clearly articulated. If your estate is complex or you have questions about the legal implications, consulting a legal professional is advisable to navigate the process effectively.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.
Ensures remaining assets are distributed according to the will.
Can include various types of property.
May involve state-specific rules for distribution.
Key takeaways
Frequently asked questions
If you do not include a residuary bequest, any remaining assets may be distributed according to state intestacy laws, which may not align with your wishes.
Yes, you can amend your will to change the terms of your residuary bequest at any time, as long as you follow the legal requirements for making changes.
Generally, the assets in a residuary bequest may be subject to estate taxes, depending on the total value of the estate and applicable laws.