The residuary estate is what remains in an estate after specific gifts, debts, expenses, taxes, and other distributions are handled.
In plain language, it is the remainder or catch-all portion of the estate. A will often names one or more residuary beneficiaries to receive it.
Why it matters
The residuary estate matters because not every asset is listed separately in a will. A residuary clause can prevent overlooked property from passing by intestacy.
The term also matters when assets change between the time a will is signed and the time probate occurs.
Where it appears
Residuary estate appears in wills, probate accountings, beneficiary distributions, estate tax planning, will contests, and executor instructions.
Practical example
A will gives a car to one child and jewelry to another, then says the rest of the estate goes equally to all children. That remaining portion is the residuary estate.
How it differs from nearby terms
The residuary estate differs from a beneficiary. The residuary estate is property; the beneficiary is a person or entity that receives property.
It also differs from intestate, which describes dying without a valid will controlling the property.
Related terms
Quick knowledge check
Question: What is the residuary estate?
Answer: The remaining estate property after specific gifts, debts, expenses, and other distributions are handled.