Legal Definitions - remainder bequest

A remainder bequest, also frequently referred to as a residuary bequest, is a gift made in a will or trust that consists of all the assets remaining in an estate or trust after all specific gifts, debts, taxes, and administrative expenses have been paid. It represents the "leftover" or "rest and residue" of the estate or trust property once all other obligations and specific distributions have been fulfilled.

Here are some examples illustrating a remainder bequest:

• Example 1: Charitable Giving

  A person's will specifies: "I give $25,000 to my cousin, my collection of rare books to the local library, and the remainder of my estate to the National Wildlife Federation."

  Explanation: In this scenario, after the cousin receives their cash gift, the library receives the books, and all debts, taxes, and funeral expenses are settled, whatever assets are left over—be it cash, investments, real estate, or other personal property—constitute the remainder bequest. This entire remaining portion is then distributed to the National Wildlife Federation.

• Example 2: Family Distribution

  A will states: "I leave my antique desk to my daughter, my car to my son, and all the rest, residue, and remainder of my property, both real and personal, to my spouse."

  Explanation: Here, the daughter and son receive specific items. Once those specific gifts are distributed and all estate obligations (like outstanding bills or taxes) are paid, the spouse receives everything else that is left. This "rest, residue, and remainder" clause effectively creates a remainder bequest for the spouse, ensuring they inherit all assets not specifically designated for others.

• Example 3: Trust Distribution After a Life Interest

  A trust document specifies: "The income from this trust shall be paid to my brother for his lifetime. Upon his death, the remainder of the trust principal shall be distributed to my grandchildren, equally per stirpes."

  Explanation: In this case, the brother has a temporary interest, receiving income from the trust assets during his life. Once his interest terminates (upon his death), the entire principal of the trust that is left over—after all income payments have ceased and any final expenses are covered—is considered the remainder. This remainder is then distributed to the grandchildren as specified.