Wills Residuary Estate: What You Need to Know for Effective Estate Planning

Definition & Meaning

The term residuary estate refers to the portion of a deceased person's estate that remains after all specific gifts, bequests, and debts have been settled. Essentially, it includes all property that has not been specifically allocated to someone else in a will. A will typically contains a residuary clause that designates a residuary legatee"the individual or entity entitled to receive this remaining property. This part of the estate may also include bequests that are void or have lapsed.

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Legal Use & context

In legal practice, the concept of a residuary estate is primarily used in probate law. It plays a crucial role in the administration of a deceased person's estate, ensuring that any remaining assets are distributed according to the wishes expressed in the will. This term is relevant in various legal areas, including:

Probate law
Estate planning
Tax law, particularly regarding estate taxes

Individuals may benefit from using legal templates, such as those available through US Legal Forms, to create their wills and residuary clauses accurately.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A person writes a will that bequeaths specific items, such as a car and a piece of jewelry, to their children. The remaining assets, including a house and savings, will go to a charity as specified in the residuary clause.

Example 2: A will states, "I bequeath my personal belongings to my sister. All other property not specifically mentioned shall be distributed to my favorite charity." In this case, the charity is the residuary legatee. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State	Key Difference
California	Allows for a simplified probate process for small estates.
New York	Requires formalities in will execution that may impact the residuary estate.
Texas	Has specific laws regarding community property that can 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
Bequest	A specific gift of personal property in a will.	A bequest is a specific item, while a residuary estate is everything left over.
Devise	A gift of real property in a will.	A devise refers specifically to real estate, whereas a residuary estate includes all leftover assets.

Common misunderstandings

What to do if this term applies to you

If you are creating a will, consider including a residuary clause to ensure that all remaining assets are accounted for. Using legal templates from US Legal Forms can help you draft a clear and effective will. If your estate is complex or if you have questions about specific bequests, it may be wise to consult a legal professional for tailored advice.

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Quick facts

Typical Fees: Varies by state and complexity of the estate.
Jurisdiction: Governed by state probate laws.
Possible Penalties: Failure to follow will instructions may lead to disputes or litigation.