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LSDefine
Simple English definitions for legal terms
true residue
Read a random definition: surplus profit
A quick definition of true residue:
True residue: The money left over after paying for a person's debts, expenses, and gifts to others when they pass away is called the true residue. It's like having a jar of coins and taking out some to give to others or pay bills, and the true residue is what's left in the jar.
A more thorough explanation:
Definition: True residue refers to the income that is left over after all the debts, administration expenses, and general legacies of a deceased person have been paid off. It is also known as clear residue.
Example: Let's say that John passed away and left behind an estate worth $500,000. After paying off his debts, administration expenses, and general legacies, the total amount spent was $300,000. The true residue in this case would be $200,000 ($500,000 - $300,000).
Explanation: This example illustrates how true residue is calculated. When a person dies, their estate is used to pay off any outstanding debts, expenses related to administering the estate, and any legacies that were left behind. Once these expenses have been paid, the remaining amount is known as the true residue. In this case, John's estate was worth $500,000, but after paying off all the expenses, the true residue was $200,000.