Residuary clause
A clause in a will that directs any asset not specifically named in it to one identified beneficiary, so nothing is left without a named recipient.
In plain language
A will lists out specific property and who should get it. No list is ever completely exhaustive — an asset acquired after the will was signed, or simply one the testator forgot to mention, is not automatically covered.
A residuary clause closes that gap. It names one beneficiary to receive everything left over — anything the will does not specifically mention elsewhere.
How it works
The workbook lists 8 features a valid will must have, and the residuary clause is one of them, alongside requirements such as being in writing, naming and addressing the testator, clearly listing the beneficiaries and the property bequeathed, and being signed by the testator and attested by 2 witnesses.
Without a residuary clause, any asset the will does not specifically cover does not automatically stay within the testator's intended plan — it can instead fall to be distributed under the general succession rules that apply when there is no valid direction for it, defeating the purpose of having made a will in the first place.
A worked example
Mrs Kapoor's will names her flat for her son and her fixed deposits for her daughter. She signs it, and it is attested by 2 witnesses.
Years later, she buys a small parcel of agricultural land, but never updates the will to mention it. Because her will includes a residuary clause naming her spouse as the recipient of anything not specifically listed, the land passes to her spouse without dispute when she dies.
Had her will not included that clause, the land — being an asset the will never mentioned — would not automatically follow her intended plan, and could instead be distributed among her legal heirs under the general succession rules, regardless of what she may have actually wanted.
Why NISM asks about it
Chapter 8, section 8.2.7 (Wills, Trusts and Other Documents Linked to Estate Planning), lists the residuary clause among the 8 essential features of a valid will. Expect a question listing several will features and asking which one is the residuary clause, or a scenario testing what happens to an asset a will does not specifically mention.
Common exam traps
- A residuary clause is a catch-all, not a beneficiary list — do not confuse it with the requirement to clearly list the beneficiaries and the property bequeathed, which is a separate feature of a valid will.
- Without one, an unmentioned asset does not automatically go where the testator would have wanted — it can instead be distributed under general succession rules.
- A will can still be legally valid without a residuary clause — it is one of the workbook's recommended features, but its absence does not by itself invalidate a will that otherwise meets the other requirements.
Check yourself
1.Which of the following is required for a will to be valid?
- a)It must be registered with the sub-registrar
- b)It must be in writing, signed by the testator and attested by two witnesses
- c)It must be attested by a notary and one witness
- d)It must be probated during the testator's lifetime
Show the answer
Answer: (b) It must be in writing, signed by the testator and attested by two witnesses
"A will has to be IN WRITING" and "IT MUST BE SIGNED BY THE TESTATOR AND ATTESTED BY TWO WITNESSES."
⚠️ Registration is NOT a validity requirement: "IT IS NOT COMPULSORY TO REGISTER A WILL. HOWEVER, IT IS USUALLY A GOOD PRACTICE TO REGISTER A WILL."
⚠️ Probate cannot happen during life — it is "the copy of a will CERTIFIED UNDER THE SEAL OF A COURT of competent jurisdiction", certifying "that a particular will was PROVED on a certain date", and a will "comes into effect ONLY AFTER THE DEATH OF THE TESTATOR."
The full list of essential features:
- In writing — ⚠️ though "persons working in the ARMED FORCES CAN MAKE AN ORAL WILL" subject to certain conditions
- Name and address of the testator
- ⚠️ A statement that the will is being made VOLUNTARILY
- Beneficiaries clearly listed
- Property being bequeathed listed
- Signed by the testator, attested by two witnesses
- ⚠️ A RESIDUARY CLAUSE for assets not otherwise covered
- ⚠️ A statement REVOKING ALL PREVIOUS BEQUESTS
And review it: ⚠️ "AN ANNUAL REVIEW WILL BE ADEQUATE."
Where this is taught
Free preparation for NISM Series XVIIRelated terms
- NominationThe account holder's written direction naming who receives the securities on death — up to ten nominees for a demat account, with percentages that must total 100, mandatory for single holdings.
- TrustA legal arrangement in which property is transferred to trustees, who hold legal title and control it for identified beneficiaries on terms set out in a trust deed.
- WillA written legal declaration of how a person wants their assets distributed after death. Registration is not compulsory but preferable; without a Will, assets pass under personal laws.
- EstateEverything a person owns and owes at the time of death — real estate, investments, insurance policies, bank accounts and items of value — the pool that estate planning organises for distribution.