A residuary legacy is a bequest that is made in a will after all other bequests have been distributed. It is typically given as a percentage of the remaining estate or as specific items that were not previously mentioned in the will. This form of legacy is significant as it guarantees that any remaining assets are allocated in accordance with the deceased’s desires.
A residuary legacy is a type of gift that is given in a will, typically consisting of personal property or money. It is the remaining portion of the estate that is left to a specific individual or organisation after all other specific gifts have been distributed. For instance, an individual may choose to leave specific gifts to their children and grandchildren, and designate the rest of their estate as a residuary legacy to be given to a charity. This means that the charity will receive whatever is left over after all the specific gifts have been distributed. Another scenario is if a person designates a specific gift to their friend, but the friend passes away before the will is executed. In this case, the gift becomes part of the residuary legacy and is distributed according to the terms of the will.
A residuary legacy refers to a specific type of bequest in a will where the testator designates a portion or percentage of their estate to be distributed among beneficiaries after all other specific gifts and debts have been settled.
While a specific legacy involves the bequest of a particular item or asset, a residuary legacy encompasses the remaining assets or property that have not been specifically mentioned in the will.
Like any other provision in a will, a residuary legacy can be contested if there are valid grounds, such as undue influence, lack of testamentary capacity, or fraud. However, contesting a residuary legacy can be more challenging compared to specific legacies.
Yes, a testator has the right to change or revoke a residuary legacy at any time before their death. This can be done through the creation of a new will or a codicil, which is a legal document used to modify an existing will.
The beneficiaries entitled to a residuary legacy are typically named in the will. They can be individuals, organisations, or even charitable causes. If no beneficiaries are specified, the residuary estate may be distributed according to the laws of intestacy.
The distribution of a residuary legacy is usually determined by the terms of the will. It can be divided equally among multiple beneficiaries or allocated based on specific percentages or instructions outlined by the testator.
Yes, a residuary legacy may be subject to estate taxes depending on the total value of the estate and applicable tax laws. Beneficiaries may be responsible for paying any taxes owed on their share of the residuary estate.
Creditors generally have the right to make claims against the estate, including the residuary estate, to satisfy any outstanding debts. However, the specific laws governing creditor claims vary by jurisdiction.
In some jurisdictions, divorce or remarriage can impact the distribution of a residuary legacy. It is important to review and update your will accordingly to ensure your wishes are accurately reflected.
Other beneficiaries named in the will may contest a residuary legacy if they believe it is unfair or invalid. However, the burden of proof lies with the contesting party to demonstrate valid legal grounds for their claim.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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