Three main classifications of testamentary distributions.
The three main classifications of testamentary distributions refer to how assets are distributed upon someone's death according to their will. These classifications are:
Specific Gifts: Specific gifts are bequests or legacies that involve the distribution of specific assets to named beneficiaries. The testator (the person making the will) explicitly identifies certain items or properties in their will and designates who will receive them. For example, a testator may leave a specific piece of jewelry to a family member or a particular piece of artwork to a close friend.
Residuary Gifts: Residuary gifts involve the distribution of the remaining assets of the estate after all debts, expenses, taxes, and specific gifts have been satisfied. The testator designates one or more beneficiaries who will receive a share or percentage of the residue of the estate. This ensures that any assets not specifically mentioned in the will or covered by specific gifts are still distributed according to the testator's wishes.
Demonstrative Gifts: Demonstrative gifts combine elements of both specific and residuary gifts. They involve the distribution of a specified sum of money or a particular asset from a specific source, such as a bank account or the proceeds from the sale of a property. The testator designates a beneficiary who will receive the specified amount or asset, which is linked to a specific source, and any remaining balance is distributed as part of the residuary estate.
It's important to note that the laws governing testamentary distributions may vary between jurisdictions, so it's advisable to consult a legal professional or an estate planning expert to ensure that your testamentary wishes align with the applicable laws and regulations.
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