In estate planning, the residuary estate refers to which portion?

• A. The remainder of property after specific bequests
• B. The property that passes outside of the will
• C. The property that debts are paid from
• D. The property that the executor collects

Answer: (A)

The residuary estate is the portion of the decedent’s property that remains after all specific gifts have been made and after debts, taxes, and expenses have been paid. It’s the balance the will uses to distribute to the remaining beneficiaries through the residuary clause. Non-probate assets, like property that passes outside the will (jointly owned assets or accounts with named beneficiaries), aren’t part of this remaining portion. Debts are settled from the estate first, and the executor gathers and administers the probate assets before the residuary distribution. So, the correct idea is that it’s the remainder after both specific bequests and the settlement of obligations.