When drafting a will or trust, one important decision is choosing who will inherit your residuary estate—the assets remaining after debts, taxes, and specific bequests are handled. Naming multiple residuary beneficiaries has both advantages and drawbacks.

Pros:

1. Fair Distribution: Including multiple beneficiaries can ensure a fair distribution, especially among children or close family members.
2. Minimizing Family Conflicts: Dividing the assets equally among several beneficiaries can reduce the potential for disputes.
3. Customization: You can allocate different percentages based on each beneficiary’s needs or preferences.

Cons:

1. Complexity: Managing distributions among many beneficiaries can be logistically challenging, particularly when dividing assets that aren’t easily split (e.g., property).
2. Potential Disputes: Even with careful planning, disagreements can arise over what each beneficiary should receive, leading to potential delays or legal challenges.
3. Administrative Burden: The trustee or executor may face increased complexity in calculating, managing, and distributing assets, potentially increasing legal or administrative costs.

Naming many residuary beneficiaries offers the flexibility to provide for all loved ones but requires careful planning to avoid unnecessary complications and conflicts. Give the Davis Schilken, PC team a call (303)670-9855. We offer no obligation meetings with our skilled attorneys.