Article
Residuary Clause
What is Residuary Clause
Residuary estate is any portion of the testator's estate that is not specifically gifted and the destination of gidts that have lapsed.
It is important to name beneficiaris and substitute beneficiaries for the residuary estate to prevent partial intestacy.
Section 26, Wills Act: Gifts to children or other issue who leave issue living at the testator's death not to lapse.
Where any person, being a child or other issue of the testator, to whom any real or personal estate shall be given for any estate or interest not determinable at or before the death of that person, dies in the lifetime of the testator leaving issue, and any such issue is living at the time of the testator’s death, that gift shall not lapse, but shall take effect as if the death of that person had happened immediately after the death of the testator, unless a contrary intention appears by the Will.
The Importance of Residuary Clause
If the residuary clause is absent in a Woll, the residuary estate will pass to the Testator's heirs by intestacy.
With a residuary clause, the failure of a residuary gift to one Beneficiary causes that beneficiary's share to be divided among the remaining residuary takers.
Residuary estate is any portion of the testator's estate that is not specifically gifted and the destination of gifts that have been lapsed.