What is a residuary beneficiary?

In everyday speak, residue means whatever’s left over.

The same applies in the context of wills and probate. The residue of an estate is whatever’s left over after payment of specific gifts, expenses, debts and inheritance tax.

A beneficiary is a person who receives a gift under a will, so a residuary beneficiary is a person who is due to receive part or all of the residue.

The residue clause in a will

Many wills make provision for specific gifts of money and property, also known as “pecuniary legacies” and “specific legacies”. For example, £10,000 to a local charity and a 19th Century grandfather clock to a friend. There should also be a clause allowing payment of debts, the funeral and other expenses.

After these provisions, there should be a residue clause. That is, the part of the will which gives away the rest of the estate.

Sometimes the residue clause comes first. For example if the entire estate is passing to a spouse or civil partner.

A residue clause is a vital part of a will. Without it, the will-maker will almost certainly die “partially intestate”, with a will that doesn’t deal with the whole estate. Only a will that has been very badly drafted will be missing a residue clause.

Who is a residuary beneficiary?

A residuary beneficiary is anyone who benefits from the residue clause in a will.

He or she receives a proportion of the residue, often stated as a percentage (for example, 25% of the residue) or a share (for example, an equal share of the residue). They may even receive the entire estate, for example if there is just one beneficiary, such as a surviving spouse or civil partner. In that case, they are the sole residuary beneficiary.

Residuary beneficiaries typically receive the bulk of an estate. They are often surviving spouses or civil partners, children or other close relatives, but they can be anyone.

If there are no executors

A residuary beneficiary is first in line to administer the estate if there are no executors willing or able to do so.