Residuary Estate

Estate Documents

Whatever is left of an estate after specific gifts, debts, taxes, and administration costs are paid; distributed under the residuary clause of a will or trust.

The residuary estate is the property that remains after a will pays specific gifts, debts, taxes, and administration expenses. The residuary clause of a will (or trust) decides who receives this remainder.

Why a Residuary Clause Matters

Most assets in a typical estate flow through the residue. The residuary clause is the catchall that distributes everything not handled by a specific gift. Without it, anything left over would pass under Arizona's intestate succession statutes, which may send assets to people the testator never intended to inherit.

Drafting Considerations

A clear residuary clause names primary and contingent beneficiaries, addresses what happens if a beneficiary predeceases, and specifies whether shares pass per stirpes or per capita. A pour-over will can also direct the residue into a living trust for unified administration.