When you create a will or trust, beneficiaries are named to receive property after you die. The residuary beneficiary is one type of beneficiary that you could name when setting up a will or trust. This type of beneficiary does not have specific property left to him, but can inherit anything that is not specifically left to someone else.
Beneficiaries
The individuals that you name to inherit your property when you die are known as beneficiaries. When you choose your beneficiaries, you can choose specific property to leave them such as a house or a car. With a residuary beneficiary, you do not name specific property for them. Instead, they simply get what is left over after the other beneficiaries get what is entitled to them. They get the residuary of the estate after the other property is distributed.
Saving Time
One of the reasons that you may wish to name a residuary beneficiary is so that you can save time. By naming a residuary beneficiary, you will not have to take the time to list out all of the property in your estate when creating your will or trust. If you have a large estate, it could take a substantial amount of time to list out all of your property. By naming a residuary beneficiary, you can skip this process.
Unclaimed Property
When you name a residuary beneficiary, she can also take any property that is unclaimed by the other beneficiaries of the estate. For example, if one of your beneficiaries does not want the house that is left to him in the will, the residuary beneficiary can then take that property. In some cases, beneficiaries do not want to inheriting property because of tax concerns or they simply do not want to deal with the burden of owning more property.
Considerations
When you want to name a residuary beneficiary for your trust or will, you may want to seek professional legal assistance. If you are creating a will on your own, make sure that you abide by the rules of your state. For example, most states require you to have witnesses when signing the will. Otherwise, the will may not be upheld in probate court after you are gone. When naming a residuary beneficiary, you will also need to provide contact information for that person so that the executor of the estate can contact him when you pass away.