Distributing Assets in the Residual Estate
The residual estate is what remains of your assets after (1) debts, expenses and taxes are paid (e.g., funeral costs and income tax) and (2) any of your specific gifts are made (you will have the opportunity to indicate specific gifts later in this workflow). For most people, the residual estate consists of the bulk of their assets, but be mindful that it is possible not much will remain in your residual estate for the beneficiaries you choose.
Currently, only people or charities can be named as beneficiaries of the residual estate.
Within the document workflow, you are able to designate how you would like to distribute your estate in the Distributing Assets panel under the Residual Estate section.
Here is how it appears in the Joint Trust workflow:
If choosing To my spouse if living, otherwise to my children in equal shares: you will not need to enter anything further from here.
If choosing To my spouse if living, otherwise to custom beneficiaries:
This includes if you would like to leave unequal shares to children. You can enter in your children and/or other named beneficiaries and charities on the following page under Recipients of Your Estate to specify how you and your spouse would like assets distributed after both of you have passed away. When you select "to my spouse if living" in the Joint Trust workflow, it means that you are selecting your spouse to receive all assets first. The assets would then be distributed after both of you have passed away to either children or custom beneficiaries.
Here you can Add Individuals to list as a beneficiary, edit their percentage of the residual estate, and choose how you would like the beneficiary's portion of the estate to pass should they predecease you and your spouse. If a primary beneficiary has no descendants, their share can be redistributed among the remaining named beneficiaries. Note that the system automatically splits the redistributed share equally among the remaining beneficiaries, and custom percentage splits for this redistribution are not supported. Alternatively, you can designate a contingent beneficiary to receive that share.
Here is how it appears in the Individual Trust workflow:
When you select "to my spouse if living" in the Individual Trust workflow, it means that you are selecting your spouse to receive all assets first. If your spouse passes away first (before inheriting the estate), the assets will then be distributed to either children or custom beneficiaries depending on your selection.
If choosing To my spouse if living, otherwise to my children: You can enter your children on the following page under Recipients of Your Estate and determine how you would like assets distributed to your children if your spouse passes away first.
Here you can elect to either enter shares manually or toggle to 'Distribute shares equally'. If a primary beneficiary has no descendants, their share will be automatically redistributed equally among the remaining beneficiaries. Custom percentage splits for this redistribution are not supported, so uneven allocations must be set during the initial configuration.
If choosing To my spouse if living, otherwise to custom beneficiaries: You can enter your named beneficiaries on the following page under Recipients of Your Estate and specify how you would like your assets to be distributed if your spouse predeceases you. Here you can Add Individuals or Charities to list as a beneficiary, edit their percentage of the residual estate, and choose how you would like the beneficiary's portion of the estate to pass should they predecease you. If a primary beneficiary has no descendants, their share can be redistributed among the remaining named beneficiaries or assigned to a contingent beneficiary. Redistribution is automatically split equally among the remaining beneficiaries, and custom percentage splits are not supported.
If choosing To my children if living, otherwise to their descendants: You can enter your children on the following page under Recipients of Your Estate and determine how you would like assets distributed directly to your children. Here you can elect to either enter shares manually or toggle to 'Distribute shares equally'. In cases where a primary beneficiary has no descendants, their share will be automatically redistributed equally among the remaining beneficiaries. Custom percentage splits for this redistribution are not supported, so uneven allocations should be defined during the initial setup.
If choosing To custom beneficiaries: You can enter your named beneficiaries on the following page under Recipients of Your Estate and specify how you would like your assets to be distributed after you have passed away.
Here you can Add Individuals to list as a beneficiary, edit their percentage of the residual estate, and choose how you would like the beneficiary's portion of the estate to pass should they predecease you.
NOTE: You can name contingent beneficiaries for distributions of the residuary estate to individuals only, either for To spouse if living, otherwise to custom beneficiaries or To custom beneficiaries for distributions. You cannot name contingent beneficiaries for any charities named. Additionally, if a primary beneficiary has no descendants, their share can be redistributed among the remaining beneficiaries or assigned to a contingent beneficiary. Redistribution is automatically split equally among the remaining beneficiaries, and custom percentage splits for this redistribution are not supported.
If the marital status is single or there are no children, options on the residual estate page that do not apply will be greyed out. Here is an example:
How to edit or remove Beneficiaries
Navigate to the Distributing Assets panel within your document workflow
Select the Residuary Estate section
Click next until you see the page named ‘Recipients of the Estate’
Click the 3 dots next to the Primary Beneficiary you wish to edit or remove
By selecting ‘Edit’: you can edit or update the currently named beneficiary’s details
By selecting ‘Remove’: you can delete and replace the current beneficiary you have listed here and replace with another person
Make sure to hit Save when done to ensure your updates are complete
If you need to update the percentage of the estate, click the pencil next to their name.
