Definition
A legacy (also called a bequest) is any gift you leave to someone in your will, whether it's a specific item like jewellery, a cash sum, or a share of what remains after other gifts and expenses.
The type of legacy you create has significant implications for whether your wishes are fulfilled, as different types carry different risks and legal consequences.
What Does Legacy Mean?
According to HMRC's Inheritance Tax Manual, a legacy or bequest is "a gift of money, household goods, or some other personal or moveable estate" made through a will. These terms are now used interchangeably in modern UK wills, with many solicitors using the plain English word "gift."
There are three main types. A specific legacy is a particular item—Emma leaves her vintage diamond ring to her granddaughter Sophie. A pecuniary legacy is a fixed sum—David's will states "I leave £5,000 to my friend Michael." A residuary legacy is what remains after all debts and other legacies are paid—Sarah leaves "the rest of my estate to my children equally."
Each type carries different risks. Specific legacies fail through ademption if you no longer own the item. If James leaves his 1965 Jaguar E-Type to his son but sells it first, his son receives nothing—not the car, sale proceeds, or replacement. Pecuniary legacies may be reduced through abatement if your estate has insufficient funds.
Executors pay legacies in a specific order: debts and expenses first, then specific and pecuniary legacies, finally the residuary estate. Residuary beneficiaries bear the risk if your estate's value decreases. Regular will reviews are essential after major asset changes.
Common Questions
"What's the difference between leaving someone money versus leaving them a specific item?" Cash amounts are pecuniary legacies, while particular items are specific legacies. If your estate runs short, cash legacies can be reduced proportionally, but if you've sold a specific item, that legacy fails completely and the beneficiary receives nothing.
"Can I leave different things to different people in my will?" Yes—you can leave specific possessions to particular people, cash sums to others, and divide whatever remains among your main beneficiaries. Most wills contain multiple legacies.
"What happens if I leave someone an item but I've sold it before I die?" This is ademption—the legacy fails and the beneficiary receives nothing, even if you received money for the item. If your will leaves "my Audi A4" but you sold it and bought a Tesla, the beneficiary doesn't get the Tesla or sale proceeds.
Common Misconceptions
Myth: "If I leave someone my car, they'll automatically get whatever car I own when I die."
Reality: Specific legacies fail by ademption if the exact item no longer exists. If your will says "my 2018 Ford Focus" and you've sold it, the beneficiary receives nothing. You could use general language ("whatever motor vehicle I own") or update your will, though vague descriptions create problems with multiple vehicles.
Myth: "All gifts in my will are paid equally from my estate."
Reality: Legacies are paid in a specific order. Debts and expenses come first, then specific and pecuniary legacies, finally the residuary estate. If your estate decreases in value, residuary beneficiaries might receive very little while cash legacies are paid in full. You could inadvertently leave your spouse with little if you've made too many cash legacies to others.
Related Terms
Understanding legacies connects to these related concepts:
- Specific Legacy: A particular identified gift of a specific item, like "my Rolex watch to my son."
- Pecuniary Legacy: A fixed sum of money left in your will, like "£10,000 to my niece."
- Residuary Estate: What remains after all legacies, debts, and expenses are paid—typically the largest part of an estate.
- Beneficiary: The person or organization who receives a legacy from your will.
- Ademption: When a specific legacy fails because you no longer own the item when you die.
Related Articles
- Understanding Will Structure: Different legacy types work together to create a complete estate distribution plan.
- Common Will Mistakes to Avoid: Choosing the wrong legacy type can lead to failed gifts through ademption.
- Estate Planning for Pre-Retirement: Different legacy types suit different life stages and asset situations.
- Tax-Efficient Charitable Giving: Charitable legacies can reduce inheritance tax liability significantly.
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Legal Disclaimer: This glossary entry provides general information about UK legal terminology and does not constitute legal advice. For advice specific to your situation, consult a qualified solicitor.