The terminology residuary is used to define the residue of remnants of estates and trusts. This refers to the property left after distributing gifts specified in the wills and trusts. Assets like personal property or real estate are counted as residuary Of a will or trust if it is not listed for a specific beneficiary. Contact a Ridgeland probate estate administration lawyer for more information.
However, residual trust is not the same as the residuary of a trust. Different types of trust can be considered residuary. In contrast, a residual trust contains the remnants of the property that are not listed to a beneficiary in a will or a trust.
The primary trust, also known as the marital trust, is for the spouse who survived. After that, the secondary or bypass trust is also known as the residual trust. It is for the heirs and listed beneficiaries of the couple. The surviving spouse of the diseased individual is allowed access to the residual trust and withdraws income from it while they’re alive. However, they do not have complete ownership of the trust. After the surviving spouse’s death, the assets held in both trusts are divided among the beneficiaries.
