Residuary clause


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(Law) that part of the testator's will in which the residue of his estate is disposed of.

See also: Residuary

References in periodicals archive ?
3-1, a valid, transferable ownership interest in real property devolves immediately upon a testators death to a person to whom the property is devised by the testators will, even if the property is devised through a residuary clause rather than through a specific devise.
The will did not have a residuary clause or any general devises which could be interpreted as disposing of any of the inherited property.
For example, suppose that the insured has three children and that the residuary clause in the revocable trust provides that, "the balance is to be divided into shares, per stirpes, for the Settlor's descendants as survive the Settlor, and each such share shall be disposed of as provided in Article 4 of this Trust," under which Article 4 contains lifetime trusts for the descendants.
The textual device for ensuring completeness of wills is a residuary clause.
A residuary clause in the donee's will or revocable trust does not manifest an intent to exercise any of the donee's power(s) of appointment, unless the power in question is a general power and the donor did not provide for takers in default or the gift-in-default clause is ineffective.
In some states, a residuary clause automatically exercises a general power of appointment, unless the trust requires that it must be specifically referred to in order to make a valid exercise or unless the will itself states that no exercise is intended.
The IRS interpreted applicable state law (Florida) to require estate taxes to be paid out of the residuary probate estate before funding any residuary clause bequests; thus, the amount passing to the surviving spouse had to be reduced for taxes.
The residuary clause in the will provides that all debts and administration expenses are to be paid from the residuary estate with the remainder passing to her sister Kathleen.
Assume, for example, that the testator's will provides a bequest of $50,000 each to three children, A, B, and C, but the will includes no effective residuary clause.
You'll want to draft a provision waiving apportionment if a client (1) has primarily probate assets, all of which are disposed of under a residuary clause, or substantial specific or general bequests and the recipients of those assets are favored over the residuary beneficiaries, or (2) has both probate and nonprobate assets but wants to favor the nonprobate recipients.
In many states, such a general reference to powers of appointment is construed as being sufficient to include that property and, in some states, the residuary clause need not even refer to powers of appointment to exercise a general power of appointment.