Legal Definitions - order assigning residue

An "order assigning residue" is a probate court's official directive that identifies the individuals legally entitled to receive the remaining portions of an estate after debts and specific bequests have been paid. This order formally allots and distributes those final shares to each designated beneficiary.

An order assigning residue is a formal legal document issued by a probate court at the conclusion of an estate administration process. This order legally identifies the individuals or entities who are entitled to receive the remaining assets of a deceased person's estate after all debts, taxes, administrative expenses, and specific gifts (bequests) have been paid or distributed. Essentially, it's the court's final directive that allocates what's left over—the "residue"—to the designated beneficiaries.

Here are a few examples to illustrate how an order assigning residue works:

• Example 1: Distribution According to a Will

  Mr. Henderson's will stated that his antique car should go to his nephew, and a specific sum of money should go to his alma mater. The will then stipulated that the rest of his estate—meaning all other assets after these specific gifts, debts, and taxes were handled—should be divided equally among his three children. After the executor has paid all creditors, taxes, and distributed the car and the money, the probate court will issue an order assigning residue. This order will formally direct the executor to divide the remaining bank accounts, investment portfolios, and any other unsold property into three equal shares and distribute them to Mr. Henderson's children, legally concluding the estate's distribution.

• Example 2: Intestate Succession (No Will)

  Ms. Chen passed away without leaving a will. According to her state's laws of intestacy, her estate, after all debts and expenses are paid, should be divided between her surviving spouse and her two children. Once the estate's administrator has settled all financial obligations, the probate court will issue an order assigning residue. This order will legally specify the exact proportions of the remaining estate (e.g., 50% to the spouse, 25% to each child) and authorize the administrator to distribute the remaining funds and property accordingly, ensuring the distribution follows state law.

• Example 3: Complex Estate with Multiple Beneficiaries

  The will of Dr. Anya Sharma directed that after her medical practice was sold and specific charitable donations were made, the residue of her estate should be placed into a trust for her minor grandchildren and also provide a substantial endowment to a local animal shelter. After the executor has completed all sales, paid all debts, and made the initial charitable donations, the probate court will issue an order assigning residue. This order will legally mandate the executor to transfer the remaining funds and assets to the designated trust for the grandchildren and to the animal shelter, as specified in Dr. Sharma's will, thereby formalizing the final distribution of her estate's remainder.