Residuary estate refers to any portion of an estate that remains to be distributed after all specific bequests are made, all probate costs and debts to creditors are paid. Residuary estates also contain any parts of the will that fail to be gifted, for example, the beneficiary is no longer alive and an alternate beneficiary is not named. The testator may name someone, often a charity, to be the beneficiary of the residual property of the estate. If however, no residual beneficiary is named, the residual property will be considered intestate and divided according to the intestate laws of the state in which the decedent died, typically meaning the residual property will pass to the testators heirs.