What is a Residuary Gift? A Comprehensive Legal Overview

Definition & Meaning

A residuary gift refers to the portion of an estate that is distributed after all specific bequests have been fulfilled. This type of gift is outlined in the residuary clause of a will, which specifies who will receive any remaining assets once all other gifts have been made. For example, if a will states, "and the rest of my property goes to Bob," then Bob is the recipient of the residuary gift, meaning he will receive whatever is left in the estate after all other gifts are accounted for.

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Legal Use & context

Residuary gifts are commonly used in estate planning and probate law. They play a crucial role in determining how the remaining assets of a deceased person's estate are distributed. This term is relevant in various legal areas, including:

Estate planning
Probate law
Wills and trusts

Individuals can manage their own estate planning by using legal templates available through resources like US Legal Forms, which provide guidance on creating wills that include residuary clauses.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Here are a couple of examples of residuary gifts:

Example 1: A will states, "I leave my jewelry to my daughter, and the rest of my estate goes to my son." In this case, the son receives all remaining assets after the jewelry has been given to the daughter.
Example 2: A will specifies, "I bequeath my car to my friend and my house to my partner. All other property shall go to my niece." Here, the niece is the recipient of the residuary gift, receiving everything else not specifically mentioned.

State-by-state differences

Examples of state differences (not exhaustive):

State	Residuary Gift Rules
California	Allows for residuary gifts to be specified in a will; no restrictions on beneficiaries.
New York	Requires clear identification of the residuary estate in the will; must comply with state laws on wills.
Texas	Similar to California; however, community property laws may affect distribution.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Difference
Specific Bequest	A gift of a specific item or amount of money in a will.	Residuary gifts cover remaining assets after specific bequests are fulfilled.
Devise	A gift of real property through a will.	Residuary gifts can include both real and personal property, while a devise specifically refers to real estate.

Common misunderstandings

What to do if this term applies to you

If you are creating a will and wish to include a residuary gift, consider the following steps:

Identify all specific gifts you want to make.
Determine who will receive the remaining assets.
Use legal templates from US Legal Forms to draft your will, ensuring clarity in your residuary clause.
If your estate is complex, consult with a legal professional for tailored advice.

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Quick facts

Typical Fees: Varies by attorney; flat fees or hourly rates may apply.
Jurisdiction: Governed by state laws regarding wills and estates.
Possible Penalties: Disputes may arise if the residuary clause is unclear, leading to potential litigation.