The term "residuary" refers to what remains after the main part has been taken away. In legal contexts, particularly in estate planning, it describes the portion of an estate that has not been explicitly addressed in a will. This leftover part can include any property or assets that were not specifically bequeathed to someone. Essentially, a residuary gift is a testamentary gift of this residual property.
In legal practice, "residuary" is primarily used in the context of wills and estates. It plays a crucial role in estate planning and probate law, where it helps determine how an estate is distributed after specific gifts have been made. Users can manage their estate planning needs using templates from US Legal Forms, which can assist in drafting wills that clearly outline residuary gifts.
Here are a couple of examples of abatement:
Example 1: If a will specifies that a house and a car are given to specific individuals, but does not mention the remaining cash and personal belongings, those items would be considered part of the residuary estate.
Example 2: A person creates a will that leaves specific gifts to friends and family but states that everything else should go to a charity. The charity would receive the residuary estate after all specific gifts are distributed. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Residuary Rules |
|---|---|
| California | Allows for residuary gifts to be distributed without specific instructions if no residuary clause is included. |
| New York | Requires clear identification of residuary beneficiaries in the will. |
| Texas | Similar to New York, but also allows for intestate succession if no residuary is specified. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition |
|---|---|
| Specific bequest | A gift of a particular item or property specified in a will. |
| Intestate | Refers to dying without a valid will, leading to state laws determining estate distribution. |
| Legacy | A gift of money or personal property left in a will. |
If you are drafting a will or managing an estate, consider including a residuary clause to clearly define how remaining assets should be distributed. Using US Legal Forms can provide you with templates to create a comprehensive will. If your estate is complex, seeking professional legal assistance is advisable to ensure all aspects are properly addressed.
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If there is no will, the residuary estate is distributed according to state intestacy laws.