What does residue mean as a legal meaning, and how is it crucial in a California probate suit?
“Residue” suggests remainder– the rest of an estate that is not otherwise dispersed. Such a rest is frequently a critical financial component of a probate. A “Residuary” clause in a Will or Trust is often called an “omnibus provision.” That is a stipulation that often determines the beneficiaries who are to get remaining property not otherwise gotten rid of, after-discovered property or payment on unanticipated contingencies. It can be basic or sometimes rather difficult as to what is staying property.
As an example– if a Will or Trust provides that $10,000 is to go to Jim and $10,000 to Julie with the remainder to Gary, a $25,000 estate would yield $10,000 each to Jim and Julie and the remaining $5000 to Gary. If property is later on discovered, depending upon the language in the residuary of omnibus stipulation, the newly discovered property will likely go to Gary. This is so whether the amount is large or small.
California probate litigation can emerge from a wide range of documents, residuary clauses, recipient classifications and a host of other problems. Lawsuits with regard to the residue is frequently tough battled and loaded with interesting twists and turns. The residue might be a deposit on an utility account or a long neglected securities account with countless shares of utility stock. You can see how residue becomes important.
A close reading of the Will, Trust and other estate documents (including retirement accounts, savings account, insurance coverage policies, safe deposit records and securities) need to be made in order to make a preliminary decision of residue. The nature of a residuary provision is that things that are not otherwise specifically discussed go into the residue. “I provide my fancy red sport coat to my cousin Gary.” If I don’t specifically discuss my orange tuxedo or otherwise normally mention it (“all my personal property to Gary”), then the orange fit goes into residue and is distributed to the heirs or recipients mentioned in the residue clause.
Residue is often consisted of stopped working presents. It may be that the beneficiary of the stopped working gift doesn’t desire it (“I don’t want a 1964 Pink Plymouth Valiant”) or that the successor predeceased the decedent (“He’s been opted for years.”) Sometimes successors can’t lie– “we last heard that he remained in India somewhere or he may be in the Congo.” In some cases the heir waives the right to the gift– “I do not want nuthin’ from no one.” Whatever the scenarios when there are probate, estate and trust fights over residue (1) the properties require to be accounted for, (2) the rightful successors of the residue must be determined, and (3) and organized circulation figured out (by order or specification).