When putting together a will, most people spend time considering and allocating various assets to loved ones. From treasured trinkets and jewellery to real estate, furniture, artwork and vehicles, the list goes on. But in most cases, even a comprehensive will doesn’t account for every single item. So, what happens to what’s leftover?
This is where it pays to have a residuary clause.
What is a residuary clause?
A residuary clause covers the portion of your estate that is not specifically detailed in your will. It includes items accumulated after your will is prepared and those things you might overlook or simply forget.
After you pass away and your debts, funeral, will and other expenses have been paid, your residuary estate remains. This is what is covered in a residuary clause.
Why do I need to include a residuary clause in my will?
When creating a will, it is important to ensure that all property is accounted for. This reduces the chances of conflict and contesting of the will. A residuary clause helps account for your estate in its entirety.
In the event a specific beneficiary of your will passes away before you and your will has not updated, a residuary clause can be used to pool this property as part of the residuary estate.
Including a residuary clause in your will is easy and can be inserted by your lawyer. Not only does the clause help ensure that your assets are distributed in accordance with your final wishes, but it acts as a practical measure to account for the many possessions you accumulate in your lifetime.
Need some help with your will? Get in touch Noel and Jeremy on (07) 4632 0480 or send an enquiry via our online form.