Dividing the balance of estate or residue

The balance of estate section is where you specify the details around the division of the residue. This article will show you how to create common and complex residue distributions.

Divide up the residue

There are two methods for dividing up the residue depending on the complexity of the instructions.   

Common Gifts

Any Percentage gift (100% or any smaller percentage and Trust or Absolute) to 1 individual or 1 charity or to a class or group of individuals or charities equally.

Use "Add Gift".  This is the most common type of residue gift. 

Here are some examples of common / simple gifts:

• 100% to John
• 35% to John
• 100% to Sue and John divided equally
• 100% to my Children, equally
• 25% to my Grandchildren, equally

1. Click the “Add Gift” button. 
2. Enter the beneficiary information.
3. Enter the Percentage of the residue. If you are gifting the entire residue to the specified beneficiary, leave “Percentage of Residue” at 100%. If the beneficiary/beneficiaries are only receiving a part of the residue, specify a different percentage value.
4. Click “Add” in the bottom corner to create the gift.

Example: 35% to John, 65% Kate and Mary Jane (equally).

Complex Gifts

Where of a percentage of the residue (<100%) is to be divided further into unequal percentages use "Add Segment".

Here are some examples of complex gifts:

• Take 50% of the residue and break it down into a two unequal amounts:
  • (75%  to Kate) and (25% divided equally between John and Steph).
• Take 50% of the residue and gift $1,000 to Teresa, then break down the balance:
  • (25% to Kate) and (25% to John) and (50% divided equally between Steph and Peter).

For Complex Gifts where there needs to be a further breakdown of a percentage into smaller percentages select the “Add Segment” button.

1. Click the “Add Segment” button.
2. Choose a name for your segment - the default is “Segment 1” but this can be changed depending on your division plan. The segment name will be used in the Will.
3. Specify a percentage value for this Segment. 
4. Click “Add” in the bottom corner.
5. Now you must add gifts to that segment. Click “Add gift”
6. Enter the beneficiary information and fill in the other fields.
7. Insert the percentage of the Segment that this beneficiary/beneficiaries are sharing equally. 
8. Click “Add” in the bottom corner to create the gift.
9. You will need to have all the gifts add up to 100% of the Segment.

Here's an example of how you would create the following a complex gift:

• Take 50% of the residue and break it down into a two unequal amounts:
  • (75%  to Kate) and (25% divided equally between John and Steph).
• Take 50% of the residue and gift $1,000 to Teresa, then break down the balance:
  • (25% to Kate) and (25% to John) and (50% divided equally between Steph and Peter).

1. Add Segment and choose 50%. 

2. Create two separate gifts. One 75% to Kate and a 25% gift divided equally between John and Steph.

3. Create another segment of 50%

4. Create a fixed amount gift of $1,000 to John

5. Create three separate percentage gifts

1. (25% to Kate)
2. (25% to John)
3. (50% divided equally between Steph and Peter).

This is what the end result should look like: 

eState Planner will automatically draft the appropriate language in the Will.

To learn how to automatically divide the residue read this article