What is a residuary estate
A residuary estate is regarded as the portion of estate left by a testator that is not specifically bequeathed to a nominated beneficiary. Under the law of wills, the scope of a residuary estate extends to any property that fails to be bequeathed. This area of law can be particularly complex to understand and it is advised that when writing a will and making a claim, that you consult with a professional consultant or lawyer to understand your rights and restrictions.
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Residuary estate explained
A residuary estate is commonly referred to a residual estate and in many cases, residue. Each jurisdiction will employ their own rules and regulations with regards to the law of wills and so it is essential to establish the steps to take in cases of residual estates.
Residuary estates occur where all property, gifts and money has been divided among the nominated beneficiaries and there is still property remaining – residue.
A residuary clause is used to identify the beneficiaries to accept the residual estate, who are in turn, referred to as a residuary beneficiary or taker.
It is typical for written wills to include a residuary clause in the will in case property residue arises however not all wills include it, resulting in all residuary estates inherited by intestacy.
Under common law, where a residuary beneficiary cannot accept the residual property, the remaining estate is inherited by intestacy, not divided among the other residual takers or beneficiaries. However, in many countries, a modern rule is adopted whereby the remaining estate that cannot be bequeathed to a nominated residuary taker will be distributed equally among the remaining residuary takers.
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