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LSDefine
Simple English definitions for legal terms
clear residue
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A quick definition of clear residue:
Clear residue refers to the money left over after a person's debts, expenses, and gifts have been paid from their estate. It is also known as true residue.
A more thorough explanation:
CLEAR RESIDUE
Clear residue refers to the remaining income after all the debts, expenses, and legacies of a deceased person have been paid off. It is also known as true residue.
For example, if a person's estate is worth $500,000 and their debts, expenses, and legacies amount to $300,000, then the clear residue would be $200,000.
Another example would be if a person's estate is worth $1,000,000 and their debts, expenses, and legacies amount to $1,200,000, then there would be no clear residue.
Clear residue is the amount of money left over after all the necessary expenses have been paid. It is important to determine the clear residue in order to distribute the remaining assets to the beneficiaries according to the deceased person's will or state law. The examples illustrate how the clear residue is calculated based on the value of the estate and the amount of debts, expenses, and legacies that need to be paid off.