Remainder Clause

Remainder Clause

One of the most important clauses in a will is the remainder clause (called a residuary clause in some states). This is the clause that says something like, "all the rest, residue, and remainder of my property I leave to..." This clause makes sure that the will disposes of all property owned at the time of death and that nothing is forgotten.

A good way to distribute property is to put it all in the remainder clause. In the previous example, the problem would have been avoided if the will had read as follows: "The rest, residue, and remainder of my estate I leave 5% to ABC Hospital, 5% to XYZ Animal Welfare League, and 90% to be divided equally among my children..."