Failed Gifts Fall to the Residue
A devise in a will can fail for several reasons. The named beneficiary might pass away at the time of death before the person who wrote the will. The antilapse statute under A.R.S. 14-2603 might not apply. The beneficiary might disclaim the gift. The intended recipient might no longer exist.
When that happens, Arizona law has a simple default rule. The failed gift becomes part of the residuary estate.
Except as provided in section 14-2603, a devise, other than a residuary devise, that fails for any reason becomes a part of the residue.
A.R.S. § 14-2604(A)The residuary estate is the catch-all category in a will. It covers everything not specifically given to a named person or entity. Most well-drafted wills include a residuary clause that names who should receive the gift of "everything else." When a specific gift fails, it flows into that residuary pool.
When Part of the Residue Itself Fails
The statute also addresses what happens when the residuary estate is divided among multiple people and one person's share fails. Rather than sending that failed share to intestacy, Arizona law keeps it within the residuary group.
Except as provided in section 14-2603, if the residue is devised to two or more persons, the share of a residuary devisee that fails for any reason passes to the other residuary devisee or to other residuary devisees in proportion to the interest of each in the remaining part of the residue.
A.R.S. § 14-2604(B)For example, if a will leaves the residue equally to three siblings and one sibling predeceases without triggering antilapse, the remaining two siblings each receive half of the residue. The estate stays within the group the person who wrote the will intended to benefit. If the will does not name an alternate beneficiary, this proportional sharing is the default outcome.