Estate plans often include clear instructions for specific assets. Resources worth a substantial amount of money and assets that have emotional value to beneficiaries often feature prominently in modern estate plans. Any assets not directly mentioned in the will or other estate planning paperwork become the residuary estate. Properly addressing the residuary estate is important to limit conflict among beneficiaries and delays during estate administration.
What options are there for addressing one’s residuary estate?
1. Plan an estate sale
Many testators leave instructions for their personal representatives to sell any assets not specifically addressed in their paperwork. They may then leave instructions regarding the distribution of any revenue generated by the sale of estate resources.
2. Choose a beneficiary
In some cases, there may be one family member who has more of an attachment to the testator than others. Other times, their financial struggles might make them more inclined to use practical property or to sell it for financial benefit. Testators frequently choose to allocate their residuary estates to specific individuals.
3. Donate what remains
Well-established family members may have no need for the furniture, kitchen tools or clothing of a deceased family member. However, there could still be plenty of usable life left in those resources. Arranging to donate those assets to a charitable cause, such as a domestic violence shelter or nonprofit resale shop, could help support the local community.
Addressing issues that can complicate probate proceedings is an important part of the estate planning process. Testators need to consider the assets that they haven’t already allocated to specific beneficiaries when creating or updating their estate plans accordingly.