Residuary Clause


Also found in: Dictionary.
Related to Residuary Clause: Residuary bequest, Declaratory judgment, Residuary estate

Residuary Clause

A provision in a will that disposes of property not expressly disposed of by other provisions of the will.

References in periodicals archive ?
5 of the particular revocable trust is the residuary clause, and provides as follows:
A residuary clause or other provision in the donee's will or revocable trust that does not manifest an intent by the donee to exercise a power of appointment shall not be deemed to manifest an intention to exercise any of the donee's power(s) of appointment.
185) In contrast, most other states limit the inferred intent to exercise by a residuary clause to general powers, (186) The essential reason for inferring the donee's intent to exercise was to avoid having the property pass to the donor or the donor's successors in interest.
Passing under the donee's residuary clause would contravene the donor's intent that the takers in default succeed to the property, (188) More importantly, my recommended statute provides that if there is no effective gift-in-default clause, and the donee fails to exercise a general power, the property passes to the donee's estate, not the donor's estate.
The bottom line for me is that it is time to retire the fiction that the mere existence of a residuary clause or other provision evidences a donee's intent to exercise a power of appointment.
An alternative would be to include a contingency or catch-all provision that applies to the extent property is not effectively disposed of by the residuary clause or the provisions of a testamentary trust, such as a provision for a distribution to the persons who would be the testator's heirs under the laws of intestacy, with certain modifications.