Residue
What Is Residue?
Residue refers to the remaining assets in a deceased person’s estate after all debts, taxes, expenses, and specific gifts outlined in a will have been distributed. These remaining assets are typically transferred to beneficiaries known as residuary beneficiaries.
Residue may include any property not specifically assigned in the will.
Why It Matters
Residue provisions ensure that any remaining assets are distributed according to the testator’s wishes rather than being left unaccounted for. Without a residue clause, leftover assets may be distributed according to intestacy laws.
Including a residue clause helps ensure complete estate distribution.
How Residue Works
During the probate process, estate administrators first address financial obligations and specific gifts.
The process generally includes:
- paying debts and taxes
- distributing specific bequests
- identifying remaining estate assets
The remaining property forms the residue of the estate and is distributed to designated beneficiaries.
Example
A will leaves a car to one child and jewelry to another. After debts and gifts are distributed, the remaining investments and property form the estate’s residue and are distributed according to the residue clause.
Residue vs Specific Bequest
- Residue refers to the remaining assets of an estate.
- A specific bequest refers to a particular asset given to a specific beneficiary.
FAQs About Residue
What happens if a will does not mention residue?
Remaining assets may be distributed according to state intestacy laws.
Can residue include different types of assets?
Yes. Residue may include property, investments, or cash.
Who receives the residue?
Beneficiaries identified in the will’s residue clause.
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