Legal Definitions - overplus

Overplus refers to an excess amount or a remainder of something, typically money or assets, that is left over after all specified debts, obligations, or distributions have been satisfied. It is essentially a surplus.

• Example 1: Foreclosure Sale Proceeds

  Imagine a homeowner defaults on their mortgage, and their house is sold at a foreclosure auction for $350,000. The outstanding mortgage balance, including all fees and interest, is $300,000. After the bank receives its $300,000, there is an overplus of $50,000. This remaining $50,000 would typically be returned to the former homeowner, as it is the excess amount beyond what was needed to satisfy the debt.

• Example 2: Trust Fund Distribution

  Consider a trust established to provide for a beneficiary's education and living expenses. The trust document specifies that $5,000 per month should be distributed to the beneficiary. However, due to successful investments, the trust generates $7,000 in income each month. The $2,000 difference between the income generated and the required distribution is an overplus. The trust document would typically specify what happens to this excess—it might be reinvested, held for future needs, or distributed to another party.

• Example 3: Estate Administration

  When a person passes away, their estate goes through a process of administration where assets are collected, debts are paid, and specific bequests (gifts) are distributed according to their will. If, after all creditors have been paid and all specific gifts to beneficiaries have been fulfilled, there are still assets remaining in the estate, these remaining assets constitute an overplus. This excess would then typically be distributed to the residuary beneficiaries named in the will, or according to intestacy laws if there is no will.