A residuary legatee may be constituted by any words that show an intention on the part of the testator that the person designated shall take the surplus or residue of his property.
Illustrations:
(i) A makes her will, consisting of several testamentary papers, in one of which are contained the following words:-
"I think there will be something left, after all funeral expenses, etc., to give to B, now at school, towards equipping him to any profession he may hereafter be appointed to." B is constituted residuary legatee.
(ii) A makes his will, with the following passage at the end of it:-"I believe there will be found sufficient in my banker's hands to defray and discharge my debts, which I hereby, desire B to do, and keep the residue for her own use and pleasure." B is constituted the residuary legatee.
(iii) A bequeaths all his property to B, except certain stock and funds, which he bequeaths to C. B is the residuary legatee.
Legal Commentary & Landmark Judgments: Section 102
Section 102 establishes that a residuary legatee may be constituted by any words that show an intention on the part of the testator that the person designated should take the surplus or residue of his property.
Any words in a will that clearly demonstrate the testator's intention that a particular person should take the surplus, remainder, or leftover balance of their property are sufficient to constitute that person as the lawful residuary legatee.
The appointment of a residuary legatee is the ultimate safeguard against partial intestacy. A validly constituted residuary legatee stands as the testamentary universal successor to all assets not specifically bequeathed or whose specific bequests fail.
Section 102 is vital when drafting and construing informal wills. Phrases such as 'whatever is left over shall go to my brother' or 'my wife shall take the balance of my estate' validly constitute a residuary legatee under Section 102, conferring complete entitlement to all unallocated assets.