What does a residuary gift include?

A residuary gift refers to the portion of an estate that remains after all specific gifts, debts, taxes, and expenses have been settled. In the context of wills and trusts, a residuary clause is designed to capture and distribute any assets that have not been explicitly addressed elsewhere in the testamentary document. This encompasses all remaining property not specifically bequeathed, ensuring that every part of the estate is accounted for and directed according to the testator's wishes.

This option aptly describes the nature of a residuary gift, as it clarifies that it includes any leftover assets after fulfilling the specific items or amounts previously mentioned in the will. By designating a residuary gift, a testator can ensure that those left behind receive what is rightfully theirs without the risk of unallocated or abandoned property.

Meanwhile, the other options present restrictions that do not align with the definition of a residuary gift. Specific items or percentages not mentioned are typically categorized as part of specific gifts rather than the remainder of the estate. Cash gifts do not capture the broader range of assets included in a residuary gift, and gifts designated to charities are also not synonymous with residuary gifts, as they represent a specific allocation distinct from what remains in the estate.