Section 2: Residual gifts.

It may be provided in a gift that a person will be called upon to receive what remains of the gift or bequest made to a first donee on the death of the latter.

A residual gift does not oblige the first beneficiary to keep the property received. It obliges him to pass on the surviving property. Where the property, the subject of the residual liberality, has been alienated by the first gratified, the rights of the second beneficiary are carried over neither to the proceeds of such alienations nor to the new property acquired.

The first beneficiary may not dispose of the property given or bequeathed as a residual gift by will. The residual gift may prohibit the first beneficiary from disposing of the property by gift inter vivos. However, where he or she is a reserved heir, the first beneficiary retains the possibility of disposing inter vivos or mortis causa of the property that has been given in advance of the share of…

The first grantee is not required to account for its management to the disposing party or its heirs.

The provisions set out in articles 1049, 1051, 1052, 1055 and 1056 are applicable to residual gifts.