What is the 'residue' of an estate and who gets it in Ontario?
The residue of an estate is what remains after all debts, taxes, funeral expenses, estate administration costs, and specific gifts named in the will have been paid or distributed. It is sometimes the largest portion of the estate.
A well-drafted will names one or more "residuary beneficiaries" who receive whatever is left over. For example, a will might leave a specific sum to a charity, specific jewelry to a sibling, and then direct the residue equally to two adult children. Those children are the residuary beneficiaries and will receive everything that remains after the specific gifts and estate costs are settled.
If a will fails to name a residuary beneficiary — or if the residuary beneficiary dies before the testator and no alternate is named — the residue may fall into a "partial intestacy," meaning it is distributed according to Ontario's intestacy rules rather than by the will. This is one reason estate lawyers recommend reviewing a will after significant life changes, such as the death of a named beneficiary.
Key takeaways
- The residue is what remains after debts, expenses, and specific gifts are paid or distributed.
- Residuary beneficiaries receive this remainder as directed by the will.
- If no residuary beneficiary is named or survives, the residue passes by Ontario's intestacy rules.
- Review your will regularly to ensure residuary beneficiaries are still living and appropriate.