Legal Definitions - residuum

Residuum refers to that which remains or is left over after specific parts or portions have been taken out, distributed, or accounted for. In a legal context, it most commonly refers to the remainder of an estate after all specific gifts, debts, and expenses have been paid.

• Example 1: Charitable Trust Distribution

  Imagine a philanthropic foundation that sets up a trust to distribute funds to various causes. The trust document specifies that $500,000 must be allocated to support medical research, and $200,000 is designated for a specific educational scholarship program. After these two specific allocations are made, any remaining funds in the trust that were not earmarked for a particular purpose would constitute the residuum. This remaining amount might then be used for the foundation's general operating costs or for other discretionary charitable initiatives.

  How it illustrates the term: The funds left over after the specific, designated distributions for medical research and scholarships represent the "residuum" – what remains from the original trust amount.

• Example 2: Estate After Specific Bequests

  Consider a person's will that states their valuable antique clock should go to their niece, and a specific sum of $10,000 should be given to a close friend. After these specific gifts (known as bequests) are distributed, and all of the deceased person's debts, taxes, and the administrative costs of settling the estate (like legal fees) are paid, whatever assets are still left over – whether it's cash, real estate, or investments – form the residuum of the estate. The will typically names a "residuary beneficiary" who receives this remaining portion.

  How it illustrates the term: The assets that are left in the estate after all specific instructions in the will have been followed and all financial obligations met are the "residuum" – the ultimate remainder.

• Example 3: Business Liquidation

  When a small business is liquidated, its assets are sold to pay off creditors. First, secured creditors (those with a claim on specific assets) are paid. Then, other priority creditors like employees owed wages, and tax authorities, receive their due. If, after all these debts and liquidation expenses are fully satisfied, there is still money left over from the sale of assets, that remaining amount is the residuum. This residuum would then typically be distributed among the business's owners or shareholders according to their ownership stakes.

  How it illustrates the term: The money remaining after all specific financial obligations and expenses of the business liquidation have been met is the "residuum" – the surplus that is left over.