The amount remaining after payment of estate expenses, taxes, and the specific, demonstrative, and general bequests is called what?

The amount remaining after payment of estate expenses, taxes, and the specific, demonstrative, and general bequests is called what?

• A. Residuary estate
• B. Gross estate
• C. Net estate
• D. Probate estate

Answer: (A)

Residue is the portion of the estate that remains after debts, expenses, taxes, and all specific, demonstrative, and general bequests have been satisfied. In a will, you can designate certain items to particular people (specific bequests), designate a sum funded from a particular asset (demonstrative), and give a fixed amount (general). Once those dispositions are fulfilled, the leftovers—the residuary estate—are distributed according to the residuary clause or, if there’s no clause, under state law. For contrast, the gross estate is everything the decedent owned at death, before any deductions; the net estate is what remains after debts and administrative expenses are paid (and before distributing the residue); the probate estate refers to assets that must go through probate.

Residue is the portion of the estate that remains after debts, expenses, taxes, and all specific, demonstrative, and general bequests have been satisfied. In a will, you can designate certain items to particular people (specific bequests), designate a sum funded from a particular asset (demonstrative), and give a fixed amount (general). Once those dispositions are fulfilled, the leftovers—the residuary estate—are distributed according to the residuary clause or, if there’s no clause, under state law.

For contrast, the gross estate is everything the decedent owned at death, before any deductions; the net estate is what remains after debts and administrative expenses are paid (and before distributing the residue); the probate estate refers to assets that must go through probate.