residuary estate

Residuary estate refers to a testator’s remaining assets once the other assets of the estate have been distributed to the named beneficiaries per the testator’s will and the executor has settled all of the testator’s debts, taxes, or other expenses. For example, if a person owns a house and a car, but only lists their house to be given to their child in their will, then the car is a part of the residuary estate. Customarily, wills include a residuary clause with directions for what the executor must do with the residuary estates, such as intended for the beneficiaries for any remaining assets not specified in the will. 

[Last reviewed in September of 2024 by the Wex Definitions Team]

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