Legal Definitions - residuary legatee

A residuary legatee is an individual or entity named in a will to receive the remaining portion of an estate after all specific gifts, debts, taxes, and administrative expenses have been paid. This remaining portion is known as the "residue" of the estate. Essentially, they are the beneficiary who inherits whatever is left over once all other obligations and specific bequests have been fulfilled.

• Example 1: The Family Heirloom and the Remainder

  Sarah's will specifies that her antique grandfather clock goes to her niece, Emily, and her collection of rare books goes to her university library. After these specific gifts, and once all her outstanding bills, funeral costs, and taxes are paid, her will states that "all the rest, residue, and remainder of my estate, both real and personal, shall go to my brother, David."

  Explanation: In this scenario, David is the residuary legatee. He will inherit everything that isn't specifically given to Emily or the university, and whatever cash or assets remain after all of Sarah's financial obligations have been settled. The exact value David receives isn't fixed at the time the will is written, as it depends on the final accounting of the estate.

• Example 2: A Business Owner's Estate

  Mr. Henderson, a successful entrepreneur, had a complex will. He bequeathed his company shares to his business partners, a significant sum of money to a charity, and several properties to various family members. He also had substantial debts related to his business and personal loans. His will designated his daughter, Lisa, as the beneficiary of "all the rest and residue" of his estate.

  Explanation: Lisa is the residuary legatee. After the company shares, charitable donation, and properties are distributed, and all of Mr. Henderson's business and personal debts, taxes, and estate administration fees are paid, any remaining assets—which could include cash, investments, or other property not specifically mentioned—will pass to Lisa. Her inheritance is the "leftover" after all other specific instructions and financial obligations are met.

• Example 3: Unforeseen Changes to an Estate

  Maria's will left a specific sum of $50,000 to her friend, John, and her car to her nephew, Carlos. The will then named her sister, Elena, as the beneficiary of the residuary estate. Before Maria passed away, John unfortunately died, and Maria also sold her car, replacing it with a newer model that was not specifically mentioned in the will. The $50,000 intended for John now "lapses" (unless there's an anti-lapse statute or specific instruction) and the proceeds from the car sale become part of the general estate assets.

  Explanation: Elena is the residuary legatee. Because John predeceased Maria, the $50,000 that would have gone to him, along with the proceeds from the sale of the car (which was no longer in the estate in its original form), would typically fall into the residue of the estate. This means Elena's share as the residuary legatee would be larger than originally anticipated, demonstrating how the residuary legatee receives whatever is left after all other valid bequests and expenses are handled, even if circumstances change.