What happens if a residuary estate is devised to multiple persons and one beneficiary's gift fails?

In situations where a residuary estate is devised to multiple persons and one beneficiary's gift fails, the principle of proportional distribution among the remaining beneficiaries applies. When a gift fails, this commonly occurs due to reasons such as the beneficiary predeceasing the testator or the beneficiary being unable to take the gift for legal reasons.

Under the common law doctrine of "survivorship," when one of the residuary beneficiaries cannot receive their share, that portion typically does not revert to the testator’s estate but is instead divided among the remaining beneficiaries. Thus, the other beneficiaries will take the entire residuary estate proportionally, which means they will receive their shares adjusted to account for the failed gift, effectively increasing their respective percentages of the estate.

This mechanism helps ensure that the intent of the testator is honored as closely as possible, allowing for a continuation of the distribution scheme laid out in the will without reverting the failed gift to an intestate scenario or causing any additional complications. Consequently, the correct answer reflects the legal principle of equitable distribution among the available beneficiaries.