What is a residuary estate?

The residuary estate is everything left in your estate after debts, expenses and specific gifts have been paid or given out.

Why it matters

The residuary estate often makes up the biggest share of what you own—your house, savings and other property—once you’ve settled funeral costs, debts and any fixed or specific gifts. If you don’t name who gets the residue, or if your residuary clause is unclear, that leftover could pass under intestacy rules or be subject to legal challenge.

Defining the residuary estate

After someone dies, their estate is dealt with in this order:

1. Funeral expenses and debts – pays off loans, taxes and funeral costs.
2. Specific gifts – items or sums you’ve left to named people (for example, “£5,000 to my niece”).
3. Pecuniary gifts – fixed cash amounts to people or charities.
4. The residue – what remains once steps 1–3 are complete.

Your will should include a residuary clause, such as “I give all the rest and residue of my estate to my spouse, Jane Doe, absolutely.” That directs your executors how to distribute whatever remains.

Examples of residuary gifts

• Single residuary beneficiary: “All the rest of my estate to my brother, John Smith.”
• Multiple residuary beneficiaries: “I leave the residue equally between my three children.”
• Proportional shares: “50% of the residue to my friend, Alice Brown, and 50% to my charity of choice.”

Common mistakes

• No residuary clause: If you omit it, any leftover estate can fall under intestacy, ignoring your wishes.
• Vague wording: Phrases like “whatever’s left” without specifying who causes confusion.
• Failing to name backups: If your residuary beneficiary dies before you, the residue may pass under intestacy rather than to your intended alternative.
• Overlapping gifts: Leaving large specific gifts that consume the estate can make it impossible to satisfy residuary shares.

Next steps

1. Try our Estate Planning Health Check to see how much of your estate should go to the residue and whom you want to name.
2. Complete your details in our paid online will-writing service—it guides you to add a clear residuary clause and backups.
3. Once you receive your will, sign it with the required witnesses and store it safely.

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