The true residue refers to the remaining money in a person’s possession after settling their debts, expenses, and gifts to others upon their death. It can be likened to a jar of coins from which some are taken out to fulfil obligations, and the true residue represents the amount that remains in the jar.
True residue, also known as clear residue, is the income remaining after all the debts, administration expenses, and general legacies of a deceased person have been settled. For example, if John’s estate was valued at $500,000 and $300,000 was spent on debts, expenses, and legacies, the true residue would be $200,000 ($500,000 – $300,000). This demonstrates how true residue is determined, as the remaining amount after all expenses have been paid. In this case, John’s estate had a true residue of $200,000.
True residue refers to the remaining assets of a deceased person’s estate after all debts, taxes, and expenses have been paid and specific bequests have been distributed to beneficiaries.
True residue is a term used to distinguish the remaining assets of an estate after specific bequests have been distributed, whereas residue refers to the remaining assets after all debts and taxes have been paid.
The beneficiaries named in the deceased person’s will are entitled to receive true residue, unless the will specifies otherwise.
Yes, if all the beneficiaries agree, they can choose to distribute the true residue differently from what is stated in the will. However, this requires unanimous consent from all beneficiaries.
If there is no will or the will does not mention true residue, the laws of intestacy will determine how the true residue is distributed among the deceased person’s heirs according to the jurisdiction’s rules.
Creditors have the right to make claims against the estate to recover any outstanding debts. If there are insufficient assets in the true residue to cover these debts, the creditors may receive a portion of the remaining assets.
Yes, the executor or personal representative is entitled to receive reasonable compensation for their services, which can be paid from the true residue of the estate.
Yes, estate taxes are typically paid from the assets in the true residue. However, if there are insufficient funds, the beneficiaries may be required to contribute proportionately to cover the tax liability.
Yes, the distribution of the true residue can be challenged in court if there are valid grounds, such as allegations of undue influence, fraud, or lack of testamentary capacity. It is advisable to consult with an attorney to assess the viability of such a challenge.
The time it takes to distribute the true residue can vary depending on the complexity of the estate, the presence of any disputes, and the efficiency of the executor. It can range from a few months to several years.
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: 17th April 2024.
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