The residue of the estate is everything that is left over in the estate after debts, taxes, funeral expenses, and other testamentary expenses, as well as any specific bequests or legacies, are paid. When drafting a Will, the concern is always to ensure that circumstances will not result in a situation that will give rise to an intestacy (a failure of the Will to apply to the facts as they are at the time of the testator’s death). 

For example, consider the following typical scenario:

1. A and B are married and they have one child, C. The typical residue provisions would provide that on the death of A and B then the residue would be paid to C (and this may be in trust but assume that we are dealing with an outright gift to C).
2. However, if A, B, and C die together (this is what is commonly referred to as a “Family Disaster”), the residue provisions need to address what happens in the event that C is not alive when both A and B die to prevent an intestacy. 
3. The Will should then set out that if C does not survive A and B for a period of thirty days (known as the “Determination Date”), then the residue will be paid to D, E and F. This second layer of gift is payable on the Determination Date. This clause may seem like a technicality, but its omission is a source of negligence in drafting.
   

Templates in WillPowerWeb For Dealing With Residue

The following templates are available in RealtiWeb:

1. Married Couple – Residue Equally to Adult Children – The residue is paid to the surviving spouse, and on the death of the last of the spouses, as outright gifts to the adult children equally, with trust over provisions for minor grandchildren at specified ages.
2. Married Couple – Residue Equally to Minor Children – The residue is paid to the surviving spouse, and on the death of the last of the spouses, in trust to the minor children at specified ages equally, with trust over provisions for minor grandchildren at specified ages.
3. Married Couple – Residue Not Equally Distributed to Children – The residue is paid to the surviving spouse, and on the death of the last of the spouses, in trust to the minor children at specified ages in unequal fractions, with trust over provisions for minor grandchildren at specified ages.
4. Married Couple – Residue to Named Individuals - Where a couple has no children, the residue is paid to the surviving spouse, and on the death of the last of the spouses, divided among any combination of family members, friends, charities, or other nonprofit organizations.
5. Single Person – Residue Equally to Adult Children - The residue is paid outright equally to the adult children, with trust over provisions for minor grandchildren at specified ages.
6. Single Person – Residue Equally to Minor Children – The residue is paid in trust to minor children at specified ages equally, with trust provisions for minor grandchildren at specified ages.
7. Single Person – Residue Not Distributed to Children – The residue is paid in trust to minor children in unequal hares, with trust provisions for minor grandchildren at specified ages.
8. Single Person – Residue to Named Individuals - The residue is divided among any combination of family members, friends, charities, or other non-profit organizations, with specific distributions to each named beneficiary.
   

You can also create your own Will templates which you can learn more about in this article. 

Navigating the Residue Screen

The Residue Screen is divided into the following three tabs:

• Residue Equally to Children

• Residue to Named Individuals

• Family Disaster

When working in your file, complete the Residue section using either Residue Equally to Children or Residue to Named Individuals tabs, and then complete the Family Disaster section. 

Note: Before performing any actions on any of these Residue tabs, ensure that you have included all of the individuals (except spouses, who may be added on the Client info tab depending on the template selected) who may be entitled to receive the residue in the People window.