Residuary Beneficiary Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Residuary Beneficiary, written in plain English, along with examples of how it is used.
What is Residuary Beneficiary?
“After the estate has been dispensed to the legal heirs, the individual who receives whatever remains from the estate.
History and Meaning of Residuary Beneficiary
A residuary beneficiary is a term used in estate planning law. The residuary beneficiary is the individual or entity named in the will or trust, who will receive any remaining assets after all specific bequests and other gifts have been made. In other words, the residuary beneficiary gets what is left after all other gifts have been distributed. The term "residuary" implies the remaining part of an estate, and "beneficiary" refers to the person who benefits from the estate.
Examples of Residuary Beneficiary
- John's will stated that his house and car should go to his sister, his bank account should go to his son, and the remaining part of his estate should go to his nephew as the residuary beneficiary.
- In a trust created by a wealthy businessman, he named his wife as the beneficiary of his life insurance policy and his son as the beneficiary of his retirement account. The remaining assets in the trust were left to a charity as the residuary beneficiary.
- Sarah's will stated that her antique furniture should go to her cousin, her jewelry to her sister, and the remaining property should go to her friend's children as the residuary beneficiaries.
Legal Terms Similar to Residuary Beneficiary
- Heir: A person who is legally entitled to receive a deceased person's property.
- Executor: A person named in the will who carries out the terms of the will.
- Trustee: A person who manages assets in a trust for the benefit of a beneficiary.