What does residue imply as a legal meaning, and how is it important in a California probate lawsuit?
“Residue” suggests remainder– the rest of an estate that is not otherwise dispersed. Such a remainder is often an important financial aspect of a probate. A “Residuary” clause in a Will or Trust is sometimes called an “omnibus clause.” That is a stipulation that frequently identifies the recipients who are to get remaining property not otherwise dealt with, after-discovered property or payment on unforeseen contingencies. It can be easy or sometimes quite tricky as to what is staying property.
As an example– if a Will or Trust supplies 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 staying $5000 to Gary. If property is later on discovered, depending on the language in the residuary of omnibus clause, the recently discovered property will likely go to Gary. This is so whether the quantity is big or small.
California probate lawsuits can arise from a plethora of files, residuary stipulations, recipient designations and a host of other issues. Litigation with regard to the residue is often tough fought and loaded with fascinating twists and turns. The residue may be a deposit on an energy account or a long disregarded securities account with countless shares of energy stock. You can see how residue becomes important.
A close reading of the Will, Trust and other estate files (consisting of pension, savings account, insurance coverage, safe deposit records and securities) must be made in order to make an initial decision of residue. The nature of a residuary clause is that things that are not otherwise specifically discussed go into the residue. “I offer my elegant red sport coat to my cousin Gary.” If I do not specifically discuss my orange tuxedo or otherwise typically mention it (“all my personal effects to Gary”), then the orange match enters into residue and is distributed to the heirs or beneficiaries discussed in the residue clause.
Residue is typically made up of stopped working presents. It might be that the heir of the failed gift doesn’t desire it (“I don’t want a 1964 Pink Plymouth Valiant”) or that the heir predeceased the decedent (“He’s been opted for years.”) In some cases successors can’t be situated– “we last heard that he was in India someplace or he might be in the Congo.” In some cases the heir waives the right to the gift– “I do not want nuthin’ from nobody.” Whatever the circumstances when there are probate, estate and trust battles over residue (1) the properties require to be represented, (2) the rightful heirs of the residue should be determined, and (3) and organized distribution determined (by order or stipulation).