A residual estate beneficiary is the persons or entity listed in the Will to receive items that are not listed in the Will. This is a clause in the Will called the Residual Estate Clause. This clause will state how and to whom items not listed in the Will (the residual estate) is to be distributed. If this is not done, then the residual estate will be treated as intestate and distributed by the government per the Distribution Act. Proper estate planning and will writing is required to ensure your estate is distributed according to your wishes and not by other people or the government.