Residual beneficiary

[emarald23]

My relative’s Will is relatively straightforward; her partner and I are both executors. Her share of the property goes to her partner but it is the residue clause we have problems in interpreting, it states that “ALL THE REST RESIDUE AND REMAINDER Oof my property of whatsoever nature and wheresoever situate I GIVE DEVISE AND BEQUEATH to NAMED absolutely to be distributed at her discretion as she thinks fit among my grandchildren.”
My questions are:

1. Am I the sole residual beneficiary? Or are the grandchildren residuary beneficiaries also?
2. What does distributing as I see fit mean?Does it mean I have the right to decide how much each gets of the whole residue amount or do I decide how much I wish to award them from my bequest and I am entitled to the remainder?

The residue is a small amount of money (max £2,000) and some low value personal possessions eg books, photos. There are no other beneficiaries named in the Will.
I would really appreciate advice as I don’t want to do the wrong thing especially as I am an executor. Thank you in anticipation.

[Kati]

tagging Peridot ??

[Peridot]

Hi,
I assume ‘named’ is your name in the Will?
The ‘named’ person inherits the residue absolutely, so in total once inheritance tax, specific legacies, debts and testamentary expenses have been dealt with. This is not a usual clause and I am confused by the wording 'residue and remainder' Was the property jointly owned with their partner or does the partner only have a right to remain there for a set period, after which the property would fall into the residue too?

Did your relative leave any guidance in a letter of wishes for example or through discussion with you? How many grandchildren are there and what are their ages? There could be many reasons for the wording but I can't ascertain what your relatives wishes were from the extract. I wonder whether your relative thought there may be argument between the grandchildren as to who has what items of their personal belongings maybe. Would their partner have a better idea of what your relative would have wanted with regard to the grandchildren? It is at your discretion so you don't have to do anything if you don't want although I suspect your relative would expect the grandchildren to receive something, otherwise why put them in the Will.

I'm afraid you may need some help with 'translating' this clause. It should be sufficient to obtain a free half hour or reduced fee appointment with a probate specialist. As you say everything has been dealt with it is only the final piece that you need some pointers on. As executors it would be sensible to cover yourselves and have a private client specialist consider the residue with you and confirm what obligations there are placed on you as a result of the wording.

[emarald23]

Thank you Peridot for your reply, it has made things much clearer. The Grandchildren are adults. The property is left to the partner so the residual clause appears to mean everything else, a small amount of money, some jewellery, books, keepsakes. This is a very small estate but I believe I was asked to do this as I would ensure fairness. I just wanted clarification that it is at my discretion and I don't have to justify decisions I make.

[Peridot]

It can be so difficult, always best to be as fair as you can be to prevent upset. It may be different if there were substantial sums involved. One of the grandchildren may need a bit more of a helping hand financially than another for example but I doubt the sums involved would make a significant difference, get your free half hour maybe to put your mind at rest and do keep a note of your reasons for distributing the way you eventually do for future reference if needs be.

[lawboy65]

Residuary beneficiary refers to a person who receives any property by a will or trust that is not specifically left to another designated beneficiary. For example, if one makes a will leaving his or her home to another and the remainder of the property to a third person, then the third person is the residuary beneficiary

[emarald23]

Thanks again, can you explain this "free half hour"? I have never really had any dealings with solicitors so don't understand the term or where to obtain it from

[Peridot]

Hi again,
Many solicitors will offer a free initial appointment or reduced fee appointment. I'm afraid it is a case of phoning around, but you will be able to locate solicitors in your area who specialise in wills, on our sister site: justbeagle.com
It should be quite straightforward for your situation, you just need to take a copy of the Will with you as there doesn't appear to be a long history of shenanigans. If there had been i would recommend preparing a timeline and factual points that need answering to enable you to make the most of the time you have with the lawyer.