residuary

Residuary is an adjective meaning relating to the residue or remainder. In legal contexts, it refers to the portion of an estate that remains after all specific gifts, debts, taxes, and administration expenses have been paid. The term also describes the beneficiary who will receive that remainder, often named in a residuary clause of a will as the residuary legatee or residuary beneficiary. A residuary clause directs how the remaining assets are to be distributed, which may be to a single beneficiary or divided among several; it can specify shares or state equal or proportional allocation.

If a will fails to dispose of the entire estate, or if the will lacks a residuary provision, the residue may be distributed according to intestacy rules or by other governing instruments. Residuary provisions help preserve intended overall distribution amid fluctuations in the value of specific gifts.

Outside of estates, residuary can describe something remaining after a process or calculation, such as residual assets. Common issues include ambiguity, survivorship (whether a beneficiary must outlive the decedent), and disputes over whether certain assets form part of the residue. Courts interpret residuary clauses by applying the decedent’s intent and the language of the will, resolving ambiguities through established rules of construction.