What is a residuary estate?

Your residuary estate (or residue) is everything that's left in your estate after all debts, taxes, expenses, and specific gifts have been paid or distributed.

For example, if your will says:

• £5,000 to your friend John
• Your jewelry to your daughter
• Your car to your son

These are specific gifts. After giving these items and paying any debts and taxes, whatever remains - typically your house, savings, and investments - is your residuary estate.

Your will should always include a residuary clause stating what happens to this remainder. Most people leave their residuary estate to their spouse, or divided among their children, or split between family members and charities.

Without a residuary clause, any assets you haven't specifically gifted will be distributed according to intestacy rules, not your wishes. This is why every will should state clearly what happens to 'the rest, residue, and remainder' of your estate.