When a person dies and leaves his estate to various parties, the residuary estate is made up of the assets that remain after the specifically devised assets are taken out of the total estate.
Definition from Nolo’s Plain-English Law Dictionary
The property that remains in a deceased person's estate after all specific gifts are made, and all debts, taxes, administrative fees, probate costs, and court costs are paid. The residuary estate also includes any specific gifts under a will that fail or lapse. For example, Connie's will leaves her house and all its furnishings to Andrew, her VW bug to her friend Carl, and the remainder of her property (the residuary estate) to her sister Sara. She doesnt name any alternate beneficiaries. Carl dies before Connie. The VW bug becomes part of the residuary estate and passes to Sara, along with all of Connie's property other than the house and furnishings. Also called the residual estate or residue.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:23 pm