To ensure your loved ones inherit your assets when you pass away, it is vital that you word your will properly. Prestige Tax and Trust Services explains how to write a residuary clause in your will.
Write a will
It is key that you learn how to write a will. By pursuing this strategy, you will be able to determine who will inherit your assets when you die. Otherwise, this issue will be dealt with by the British courts based on the rules of intestacy, so you will not be able to control who inherits your assets.
Dealing with estate
There are two ways to bequeath assets in your will. You can make specific gifts e.g. leaving your family home to your children. You can also bequeath the ‘residue’ of your estate – everything left after gifts, inheritance tax, debts, legacies, administration fees etc. have been deducted, to someone.
Dying partially intestate
It is vital that you leave the residue of your estate to someone in your will, otherwise you will die partially intestate. This means that your gifts will be inherited by your loved ones, but the courts will decide what happens to the remainder of your estate, so your wishes will not be taken into account.
Stating your intentions
You can bequeath your entire estate to one person, which is known as a ‘residuary gift.’ You can also leave the remainder of your state, sans gifts, to more than one person. If you pursue this option, however, it is essential that you reveal, whether equal or otherwise, the share of your estate that each of the relevant beneficiaries should inherit.
If you want one person to inherit the residue, you would simply write “I give the residue of my estate to [applicable beneficiary].” If you wanted to divide the residue of your estate among multiple beneficiaries equally, you would add the other names, along with the phrase “in equal shares.”
But what if you wanted to divide the residue of your estate unequally? Let’s say that you want your mother to inherit two thirds of the residue and your brother to inherit the other third. In order to fulfil this aim, you should write in your will “I give the residue of my estate to my mother [applicable beneficiary] (two thirds share) and to my brother [applicable beneficiary] (one third share).
Prestige Tax and Trust Services
With a properly-worded will, you can ensure that your loved ones are financially protected when you pass away. In order to ensure that you write a strong will, you may want to enlist the aid of Prestige Tax and Trust Services. Our team has the legal acumen and experience needed to ensure you can deal with your estate appropriately once you die.