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One final clause to add to your will

On Behalf of | Oct 5, 2022 | Estate Planning

When you create your will, you should take the time to ensure you include everything you own in it.

The exceptions are assets that have beneficiary designations and any that you have already moved into a trust (because they technically no longer belong to you). Were you to put them in your will as well, it would create confusion, so don’t.

Yet the moment you make your will, it starts to go out of date. Every time you buy something new, you would need to add it to your will so that the probate court will know your wishes for it when you die. Few people do this. Hence lawmakers created an option called a residuary clause.

What does a residuary clause do?

It mops up any assets that you own but did not mention in your will. So if you buy a new car and die before you sell it, the residuary clause would set out who gets it.

It also comes into play if someone named as a beneficiary in your will dies before you, but you do not get around to redistributing the assets destined for them. Those assets would automatically go to the person you name in the residuary clause instead.

You can also use it to save listing all your current assets

If you want to keep your will short,  you can just name beneficiaries for the key items, such as your house, your truck and your dog. You could just use the residuary clause to cover everything you consider less important, such as your furniture and clothes.

A residuary clause is just one of many options to consider when estate planning. Seek legal help to understand more.