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What Are Residuary Clauses in a Will? UK Guide 2025

· 12 min

Michael, 58, spent weeks meticulously planning his will. He left £10,000 to each of his three children, his vintage car collection to his nephew, and his property to his wife. He felt confident everything was covered.

But when he died unexpectedly two years later, his family discovered a problem: Michael had inherited £180,000 from his late brother six months before his death—money sitting in a separate bank account he'd never mentioned in his will.

Because Michael's will lacked a proper residuary clause, that £180,000 was distributed under intestacy rules, not his stated wishes. His wife received only the first £322,000 plus personal possessions; the remaining £58,000 was split equally between his three adult children, contradicting Michael's clear intention that everything beyond the specific gifts should go to his wife.

This scenario happens more often than you'd think. According to The Gazette, residuary clause errors or omissions are among the top three mistakes in DIY wills, frequently resulting in unintended distributions costing estates tens of thousands.

In this guide, you'll learn exactly what a residuary clause is, why it's the most important clause in your will, and how to ensure yours is properly drafted.

Table of Contents

What Is a Residuary Clause? (Plain English Definition)

A residuary clause determines who gets everything left over in your estate after debts, taxes, funeral expenses, and specific gifts are settled. Think of it as the "everything else" clause.

It's also called a residuary estate clause, residue clause, residuary gift, or remainder clause. The terminology may vary, but the function remains the same: catching all assets not specifically mentioned elsewhere in your will.

Here's a concrete example: "I leave my car to my son, £5,000 to my daughter, and the residue of my estate to my wife." In this will, the wife receives everything except the car and £5,000—all bank accounts, property, investments, possessions, and any forgotten or future assets.

The Law Society confirms that residuary clauses are essential components of every properly drafted will. While 98% of professionally drafted wills include comprehensive residuary clauses, they're often misunderstood or omitted in DIY wills.

The residuary estate typically represents 70-90% of total estate value. Most assets aren't left as specific gifts—they fall into the residuary estate by default. This makes the residuary clause the most financially significant part of most wills, which is why understanding how to make a will in the UK properly is essential.

What Assets Are Included in Your Residuary Estate?

Your residuary estate includes everything not specifically mentioned in your will. This is broader than most people realize.

Financial accounts: All bank accounts, ISAs, savings accounts, current accounts, and premium bonds you haven't left to specific beneficiaries become part of your residuary estate.

Property: Your primary residence, buy-to-let properties, land, and any real estate not left as a specific gift.

Investments: Stocks, shares, bonds, mutual funds, and cryptocurrency (if not specifically gifted).

Personal possessions: Furniture, clothing, jewellery, collections, and belongings not mentioned elsewhere in your will.

Forgotten assets: Bank accounts opened decades ago, dormant pensions, forgotten savings—these all fall into the residuary estate.

Unexpected inheritances: Money or property inherited between will creation and death becomes part of your residuary estate.

Digital assets: Online accounts, digital photos, social media accounts, and domain names.

Business interests: Shares in private companies and partnership interests (unless specifically gifted).

Emma drafted her will in 2020, leaving specific gifts totaling £25,000. When she died in 2024, her residuary estate included: her £340,000 home, £87,000 in savings across three banks, £42,000 in stocks and shares ISA, a forgotten workplace pension worth £15,000, and £8,000 worth of premium bonds she'd purchased in the 1990s.

Her residuary estate totaled £492,000—nearly 95% of her total estate value. The residuary clause was the most financially significant part of her will.

According to gov.uk, over £1.2 billion sits in unclaimed UK estates, often because wills lacked proper residuary clauses to capture forgotten or unexpected assets.

Why Is the Residuary Clause the Most Important Part of Your Will?

Many solicitors consider the residuary clause the single most important clause in your will. Here's why.

It catches forgotten assets. People rarely remember every account, investment, or possession when drafting a will. Your residuary clause captures everything you've overlooked.

It adapts to changing estates. Your wealth changes between will creation and death. Percentage-based residuary gifts are far more flexible than fixed amounts that become outdated.

It prevents partial intestacy. Without a residuary clause, unnamed assets pass under intestacy rules to relatives you may not intend to benefit.

It protects against inflation. Specific gifts of fixed amounts may seem generous when drafted but become less significant over time. Your residuary estate adjusts automatically.

It captures unexpected windfalls. Inheritances, lottery wins, legal settlements, and other windfalls received before death flow into your residuary estate.

David's will from 2015 left £5,000 to each of his four grandchildren (£20,000 total) and his house to his wife. By 2025, his estate had grown significantly: he'd sold the house and downsized, leaving £380,000 in cash; his stocks had increased to £95,000; and he'd received a £40,000 inheritance from his late sister.

Because David included a comprehensive residuary clause leaving "the residue of my estate to my wife," she received the remaining £495,000 after the grandchildren's gifts, not just the house he'd mentioned. The residuary clause captured 96% of his estate's value.

Under current UK intestacy rules, if you die without a residuary clause, estates can face 6-12 month delays and legal costs of £5,000-£15,000 to resolve the partial intestacy.

What Happens If You Don't Include a Residuary Clause?

Without a residuary clause, you create what's called "partial intestacy"—a situation where part of your estate passes according to your will and part passes under intestacy laws.

Partial intestacy: Unnamed assets are distributed under UK intestacy laws, not your wishes.

Unintended beneficiaries: Assets may go to relatives you didn't want to benefit, potentially including estranged family members.

Crown takes assets: If no eligible relatives exist under intestacy rules, your estate goes to the Crown through Bona Vacantia.

Delays and costs: Executors must apply for separate grants to deal with intestate assets, increasing legal fees and probate time.

Family disputes: Confusion over your intentions leads to costly legal challenges.

Rachel's DIY will left specific gifts totaling £30,000 but included no residuary clause. When she died, her executors discovered £125,000 in unnamed assets.

Under intestacy rules effective from July 2023 (Rachel was unmarried with no children), the £125,000 went to her estranged brother—her only surviving relative—despite Rachel's clear intention that everything should go to her longtime partner.

Her partner received nothing from the £125,000 because unmarried partners have no intestacy rights. A single sentence residuary clause ("I leave the residue of my estate to my partner, James") would have ensured her wishes were honored.

UK intestacy rules (2025):

  • Married/civil partner with children: spouse gets first £322,000 + personal possessions + 50% of remainder; children get other 50%
  • Married/civil partner, no children: spouse gets everything
  • No spouse, no children: parents inherit equally
  • No spouse, children, or parents: siblings inherit
  • No eligible relatives: Crown takes estate (over £86 million went to Crown in 2023-24)

How to Draft a Residuary Clause (With Examples)

Residuary clauses can be drafted simply or with complex provisions depending on your situation. Here are examples for different circumstances.

Single beneficiary: "I give the residue of my estate to my wife, Jane Smith."

This is the simplest form—everything left after debts, taxes, and specific gifts goes to one person.

Multiple beneficiaries (equal shares): "I give the residue of my estate to my children, Emma Jones and James Jones, in equal shares."

Each child receives 50% of the residuary estate, regardless of its total value.

Multiple beneficiaries (unequal shares): "I give the residue of my estate as to 60% to my spouse, Sarah Williams, and 20% to each of my two children, Tom Williams and Lucy Williams."

This allows you to balance interests between different beneficiaries with precise percentages.

Substitution clause: "I give the residue of my estate to my husband, Peter Brown, but if he predeceases me, to my children in equal shares."

Substitution provisions prevent intestacy if your primary beneficiary dies before you.

Charity beneficiaries: "I give 10% of the residue of my estate to Dogs Trust, charity registration number 227523, and 90% to my niece, Amy Green."

Charitable gifts are IHT-exempt and may reduce your estate's overall tax rate (explained in the next section).

Age contingencies: "I give the residue of my estate to my children in equal shares, but if any child is under 18 at my death, their share to be held in trust until age 18."

This protects inheritances for minor beneficiaries by holding their share in trust.

What NOT to do:

  • "I leave everything else to my family" (too vague—which family members?)
  • "The rest goes to whoever needs it most" (unenforceable)
  • Using specific amounts instead of percentages for residuary gifts
  • Forgetting substitution provisions if primary beneficiary predeceases you

All examples are for illustration only—WUHLD generates legally precise wording tailored to your specific situation.

Residuary Beneficiaries vs. Specific Gift Beneficiaries: What's the Difference?

Understanding the distinction between these two types of beneficiaries helps you structure your will effectively.

Specific gift beneficiaries receive identified items or fixed sums (e.g., "£5,000 to my niece" or "my car to my son"). They receive their designated gift and nothing more.

Residuary beneficiaries receive percentages of what remains after everything else—usually the largest portion of your estate.

The rights differ significantly. Residuary beneficiaries are entitled to full estate accounting showing all assets, debts, expenses, and how their share was calculated. The Law Society considers this good practice, and executors should provide written approval of accounts.

Specific gift beneficiaries receive their gift without extensive accounting rights.

Risk differences matter too. Specific gifts may fail if the asset no longer exists when you die (called "ademption"). If you leave "my BMW to my son" but you've sold the car before death, your son receives nothing.

Residuary gifts adapt automatically to estate changes. If you sell assets, the proceeds join your residuary estate.

Aspect Specific Gift Beneficiary Residuary Beneficiary
What they receive Named item or fixed amount Percentage of what remains
Flexibility Fixed; may fail if asset sold Adapts to estate changes
Estate accounting rights Limited Full accounting rights
Typical value Usually smaller gifts Usually largest portion of estate
Example "£5,000 to my niece" "Residue to my spouse"

Tom's will left his £25,000 car to his nephew (specific gift) and the residue of his estate to his wife (residuary gift). Two years later, Tom sold the car and bought a cheaper model.

When he died, his nephew received nothing—the specific car no longer existed. However, Tom's wife received the proceeds from the car sale as part of the residuary estate, since the cash became part of the residue.

This demonstrates why residuary gifts are more flexible and usually more valuable.

Tax Implications of Residuary Gifts (Including Charity Benefits)

Residuary estates are subject to Inheritance Tax like the rest of your estate, but charitable residuary gifts offer significant tax advantages. Understanding how inheritance tax works in the UK is crucial for effective estate planning.

Standard IHT treatment: From April 2025, estates above £325,000 (or £500,000 with the Residence Nil-Rate Band) are taxed at 40%.

Charitable exemption: Gifts to UK-registered charities are completely exempt from IHT.

Reduced rate benefit: Leaving 10% or more of your net estate to charity reduces the IHT rate from 40% to 36% on the taxable portion. This was introduced in 2012 to encourage charitable giving in wills.

RNRB eligibility: Residuary gifts to direct descendants (children, grandchildren) may qualify for the additional £175,000 Residence Nil-Rate Band if you're leaving your home.

Here's how the 10% charity benefit works with real numbers:

Sophie's estate was worth £650,000. After the £325,000 nil-rate band, £325,000 was taxable at 40% = £130,000 IHT. Her residuary beneficiaries would receive £520,000.

But if Sophie had left 10% of her net estate (£65,000) to charity in her residuary clause, the IHT rate drops to 36% on the remaining taxable amount.

New calculation: £260,000 taxable at 36% = £93,600 IHT. Her family would receive £491,400 instead of £520,000, but the charity receives £65,000—a total distribution of £556,400.

The reduced IHT rate saved the estate £36,400 compared to paying full 40% IHT. More importantly, £65,000 went to a cause Sophie cared about, and her family still received £491,400.

According to the Smee & Ford Legacy Trends Report, charitable legacies in wills totaled £3.7 billion in 2022—the highest total ever recorded. The 36% reduced IHT rate (introduced in 2012) has helped drive significant growth in charitable bequests, with charities receiving a record 36,992 bequests in 2022.

7 Common Residuary Clause Mistakes (And How to Avoid Them)

These errors appear frequently in DIY wills and can have expensive consequences.

1. No residuary clause at all

Omitting it entirely leads to partial intestacy for any unnamed assets.

Solution: Always include a residuary clause, even if you think you've named every asset. Your estate will change between will creation and death.

2. Vague beneficiary language

"To my family" or "to my loved ones" is legally unenforceable.

Solution: Name specific individuals with full legal names: "to my daughter, Emma Jane Smith."

3. No substitution provision

If your primary residuary beneficiary predeceases you without a backup named, partial intestacy results.

Solution: Include "but if [name] predeceases me, then to [alternative beneficiary]" in every residuary clause.

4. Forgetting about ademption

When specific gifts fail because assets no longer exist, they accidentally join the residuary estate, increasing what residuary beneficiaries receive.

Solution: Review your will regularly and understand that failed specific gifts automatically become part of the residue.

5. Mixing exempt and non-exempt beneficiaries without proper planning

Leaving part of your residuary estate to your spouse (IHT-exempt) and part to your children (taxable) creates complex "grossing up" calculations.

Solution: Specify whether IHT comes from the residue or from each beneficiary's share. For complex situations, consult a tax specialist.

6. Using fixed amounts instead of percentages

"£50,000 to my son and £50,000 to my daughter from the residue" may be 20% of your estate now but 80% if your wealth declines.

Solution: Express residuary gifts as percentages ("50% to each of my two children") so they adapt to your estate's actual value.

7. Not updating after major life changes

Marriage, divorce, children born, beneficiaries dying—your residue distribution may no longer reflect your wishes.

Solution: Review your will after marriage, divorce, births, deaths, and major asset changes.

In Richefond v Dillon [2023], a testator's residuary gift was challenged and partially invalidated because the court found the testator didn't "know and approve" of the residuary clause due to limited literacy.

The failure of the residuary gift meant assets passed under intestacy instead of to the intended beneficiary. This demonstrates why residuary clauses must be crystal clear and why testators must fully understand them.

How WUHLD Ensures Your Residuary Clause Is Legally Sound

WUHLD's online will service removes the complexity from creating residuary clauses.

Automatic inclusion: Every WUHLD will includes a properly drafted residuary clause—you can't accidentally omit it.

Plain English prompts: We ask "Who should receive everything else in your estate?" instead of using confusing legal jargon.

Flexible options: Choose single beneficiaries, multiple beneficiaries, equal or custom percentages, and charity options.

Substitution built-in: We automatically ask for backup beneficiaries if your primary residuary beneficiary predeceases you.

Tax optimization: Optional 10% charitable gift for IHT rate reduction from 40% to 36%.

Age contingencies: Automatic trust provisions if residuary beneficiaries are minors.

Clear language: Legal wording generated automatically—no risk of vague or unenforceable clauses.

When you create your will with WUHLD, you'll answer questions like: "After your specific gifts are distributed, who should receive the rest of your estate?"

You can choose your spouse, children, other relatives, friends, or charities. If you select multiple people, we'll ask for percentages. If you choose your children, we'll ask what happens if a child predeceases you (substitute their children? redistribute among surviving children?).

WUHLD translates your answers into legally precise language: "I give the residue of my estate to my spouse, [Full Name], but if my spouse predeceases me, then to my children [Names] in equal shares, and if any child predeceases me leaving children of their own, that child's share shall pass to their children in equal shares."

This comprehensive clause—which would cost £650+ from a solicitor—is included in your £99.99 WUHLD will.

When to Seek Professional Advice About Residuary Clauses

WUHLD's service handles straightforward residuary clauses effectively, but some situations require specialist solicitor involvement.

Complex estate structures: Multiple properties in different countries, significant business interests, or agricultural land with special tax treatment.

Vulnerable beneficiaries: Disabled beneficiaries requiring protective trusts, or beneficiaries with substance abuse issues where you want controlled distributions.

Sophisticated IHT planning: Estates significantly above IHT thresholds requiring complex tax planning strategies.

Mixed exempt/non-exempt beneficiaries with grossing up: Complex calculations needed to ensure tax is allocated fairly.

Risk of will challenges: Estranged family members who might claim under the Inheritance (Provision for Family and Dependants) Act 1975.

Second marriages with children from first marriage: Balancing interests requires careful drafting to prevent disputes.

WUHLD's £99.99 online will service is designed for straightforward UK estates where you want to leave your residuary estate to your spouse, children, family members, friends, or charities in clear percentages. Our platform helps you create a comprehensive estate plan with all essential provisions.

If your situation involves cross-border assets, complex trusts, or sophisticated tax planning, we recommend consulting a specialist solicitor.

You can preview your WUHLD will free before paying to see if it meets your needs.

According to Which?, 87% of UK estates are straightforward and suitable for online will services. Complex estates (requiring solicitors) are typically valued at £1 million+ or involve business assets.

Frequently Asked Questions

What is a residuary clause in a UK will?

A residuary clause (also called a residuary estate clause) determines who inherits everything left in your estate after debts, taxes, funeral expenses, and specific gifts have been paid. It acts as a catch-all provision, ensuring forgotten assets don't pass under intestacy rules to unintended beneficiaries. The residuary estate typically represents 70-90% of your total estate value, making this clause the most financially significant part of your will.

What happens if my will doesn't have a residuary clause?

Without a residuary clause, any assets not specifically mentioned in your will could be distributed under UK intestacy rules rather than your wishes. This means forgotten bank accounts, unexpected inheritances, or overlooked possessions could go to relatives you didn't intend to benefit, or even to the Crown if you have no eligible family. This "partial intestacy" can delay probate by 6-12 months and add £8,000-£15,000 in legal costs.

Can I leave my residuary estate to charity?

Yes, you can leave your residuary estate to one or more charities. Charitable gifts are exempt from Inheritance Tax, and leaving 10% or more of your net estate to charity reduces the IHT rate on the rest of your estate from 40% to 36%, potentially saving your beneficiaries thousands of pounds. You can split your residuary estate between charities and family members in any percentages you choose.

How do I split my residuary estate between multiple beneficiaries?

Residuary estates are typically split using percentages or fractions rather than fixed amounts, since your estate value will change over time. For example, you might leave 50% to your spouse, 25% to each of your two children, or divide it equally among three siblings at one-third each. You can also specify unequal shares (e.g., 60% to one child, 40% to another) and include substitution provisions if a beneficiary predeceases you.

What's the difference between a specific gift and a residuary gift?

A specific gift is a particular item or fixed sum left to a named person (e.g., "£5,000 to my niece" or "my car to my son"). A residuary gift is everything that remains after all specific gifts, debts, and expenses are settled. The residuary estate usually contains the bulk of your wealth—bank accounts, property, investments not specifically mentioned—and typically represents 70-90% of your total estate value.

Can residuary beneficiaries see the estate accounts?

Yes, residuary beneficiaries have a legal right to see full estate accounts showing all assets, debts, expenses, and how their share was calculated. This is considered good practice by the Law Society, and executors should provide written approval of accounts and obtain a release from liability from residuary beneficiaries. Specific gift beneficiaries don't have the same extensive rights to estate accounting.

What assets are included in the residuary estate?

The residuary estate includes everything you own that hasn't been given away as a specific gift: all bank accounts, ISAs, properties, stocks, shares, savings, possessions, and money remaining after debts and taxes are paid. It also captures forgotten assets, unexpected inheritances received before death, and digital assets not specifically mentioned. In most wills, the residuary estate represents 70-90% of the total estate value.

Make Sure Your Residuary Clause Protects Your Estate

Your residuary clause is the safety net that ensures every penny you've worked for goes exactly where you intend—not to estranged relatives under intestacy rules, not to the Crown, and not tied up in expensive legal disputes.

It's the clause that captures the forgotten savings account, the unexpected inheritance, the assets you didn't think to name. Get it right, and you'll have complete peace of mind that your loved ones are protected.

Key takeaways:

  • Include a residuary clause in every will—it captures 70-90% of most estates' value
  • Use percentages, not fixed amounts—your estate will change; percentages adapt automatically
  • Name specific backup beneficiaries—if your primary residuary beneficiary predeceases you, avoid partial intestacy with clear substitution provisions
  • Consider the 10% charity option—leaving 10% of your residuary estate to charity can reduce your estate's IHT rate from 40% to 36%, saving your family thousands
  • Review your residuary clause after major life changes—marriage, divorce, births, deaths, or significant asset changes should trigger a will review

WUHLD's online will service includes a comprehensive, legally sound residuary clause in every will—removing the guesswork and legal risk from this critical provision.

For just £99.99 (one-time payment, no subscriptions), you'll get a complete will with all four essential documents, created in 15 minutes from home. You can preview your entire will free before paying anything, with no credit card required.

Start your will now and ensure your residuary estate goes exactly where you intend, not where intestacy rules decide.

Preview Your Will Free – No Payment Required

Legal Disclaimer: This article provides general information about residuary clauses in UK wills and does not constitute legal advice. For advice specific to your individual situation, particularly if you have a complex estate, cross-border assets, or require sophisticated tax planning, please consult a qualified solicitor. WUHLD's online will service is suitable for straightforward UK estates; complex situations may require professional legal advice.

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