A last will indicates to whom the decedent decided to assign property rights and assets after his death.
A residual beneficiary is a natural or legal person who inherits property assets not specifically assigned to other beneficiaries. The idea is that the assets or belongings associated with the inheritance that are not named in a will and left to someone in particular are considered residual assets and are assigned to this type of beneficiary. This approach is not uncommon in many cultures, with the terms of a will designating certain assets and belongings to certain people, and the rest of the estate going to a single entity.
One of the easiest ways to understand the concept of a residual beneficiary is to consider a will in which multiple beneficiaries are identified. The will may specify that the decedent’s book collection be given to a close friend, while another friend or relative receives a gift of a certain amount of money from the estate. From there, the house and all its contents can remain in the hands of the spouse or partner. Finally, there may be a provision allowing all remaining property and assets to be left to a particular individual, who is considered the residual beneficiary.
The identification of a beneficiary resident is very common in many cultures. Rather than include an exhaustive list of all assets in the decedent’s possession at the time of death, the terms of the last will and testament will bequeath specific items to certain individuals, but leave the remaining assets to that single beneficiary. The understanding is that all assets that are not specifically donated to a particular person are considered part of the residual estate and will be attributed to the person identified as the beneficiary of the residuals.
The actual extent of the assets to be inherited by the residual beneficiary may be subject to the need for the executor to settle outstanding debts of the estate. Executors are generally empowered to sell assets if necessary to settle debts, which can reduce the range of residual assets that ultimately pass to the beneficiary. The benefit of this approach is that the remaining assets do not come with any encumbrances or obligations, allowing the beneficiary to use the assets as they see fit, after settling any inheritance or other taxes that may apply to the acquisition. of assets