What is the legal significance of "residue" in a will regarding real property?

The term "residue" in a will pertains specifically to the portion of the decedent's estate that remains after all specific bequests and gifts have been distributed to the designated beneficiaries. In estate planning, specific bequests refer to particular assets or property that the decedent explicitly allocates to certain individuals. Once these specific gifts are fulfilled, any remaining assets—comprising both real and personal property—constitute the "residue" of the estate.

Identifying the residue is crucial as it determines how the leftover property will be distributed according to the terms laid out in the will. If the will specifies who receives the residue, those individuals will inherit the remaining property after satisfying all specific bequests and debts. If no such designation is made, state laws (intestacy laws) may govern the distribution of the residue.

The other options do not accurately capture the meaning of "residue" in the context of estate distribution. Claims to debt obligations pertain to the liabilities of the estate rather than its assets. The distribution of property before inheritance occurs misrepresents the purpose of a will, as bequests happen upon the death of the decedent. Lastly, while the transfer of ownership upon death is an overarching principle of estate law, it does