Legal Definitions - residuary legacy

A residuary legacy refers to a gift in a will that consists of all the personal property remaining in an estate after all specific gifts (known as specific legacies), debts, taxes, and administrative expenses have been paid. It is essentially the "leftover" personal property that has not been specifically given to someone else.

Here are some examples to illustrate this concept:

• Example 1: The Undesignated Belongings

  Imagine a will that states: "My classic car goes to my son, my antique jewelry collection goes to my daughter, and all the rest of my personal property goes to my spouse." In this scenario, the classic car and antique jewelry are specific legacies. The phrase "all the rest of my personal property" constitutes the residuary legacy. This would include items like furniture, general household goods, bank accounts, stocks, and any other personal belongings not individually itemized, all of which would be given to the spouse after debts and expenses are settled.

• Example 2: Unexpected Assets

  A person drafts a will meticulously listing their valuable art collection to a museum and their rare book collection to a university. The will then includes a clause stating that "any remaining personal property" should be given to their favorite charity. Shortly before their passing, the person unexpectedly inherits a substantial portfolio of shares in a tech company and a valuable stamp collection, neither of which were mentioned in their existing will. Since these new assets are personal property not specifically gifted elsewhere, they would form part of the residuary legacy and be distributed to the designated charity as "any remaining personal property."

• Example 3: A Failed Specific Gift

  Consider a will that leaves a specific, unique sculpture to a close friend. The will also specifies that "all other personal property" should go to the testator's (the person making the will) niece. If the friend unfortunately passes away before the testator, and the will does not name an alternate recipient for the sculpture, the specific gift to the friend cannot be fulfilled. In such a case, the sculpture, being personal property, would typically "fall into" the residuary legacy. It would then be distributed to the niece as part of "all other personal property," rather than being treated as property without an owner.