Legal Definitions - legacy

A legacy refers to a gift of personal property or money made to an individual or entity through a will by someone who has passed away. While traditionally distinguishing between gifts of personal property (legacy) and real estate (devise), these terms are often used interchangeably in modern legal language to mean any gift specified in a will.

It's important to understand that any debts owed by the deceased person must be paid before legacies can be distributed. Legacies can take different forms:

• A specific legacy is a gift of a particular, identifiable item, such as a specific piece of jewelry or a unique antique.
• A general legacy is a gift of a certain amount of money or a quantity of items that can be satisfied from any part of the estate, rather than a specific item. For example, "I leave $10,000 to my niece."
• A demonstrative legacy is a general gift that is directed to be paid from a specific source, like "I leave $5,000 to my friend, to be paid from my savings account at First National Bank."

The term legacy is often used synonymously with bequest.

Here are some examples illustrating the concept of a legacy:

• Example 1 (Specific Legacy): Sarah's will states, "I leave my grandmother's sapphire ring to my daughter, Emily." After Sarah's passing, Emily receives the exact ring mentioned in the will.

  This illustrates a specific legacy because it is a gift of a particular, identifiable item (the sapphire ring) from Sarah's estate, rather than just a general value or amount.

• Example 2 (General Legacy): In his will, Mr. Henderson specifies, "I give $50,000 to the local animal shelter." The executor of his estate then distributes this amount from Mr. Henderson's general assets, which include various bank accounts and investments.

  This is a general legacy because it is a gift of a specified monetary amount that can be satisfied from any of the deceased's available funds, not tied to a particular bank account or specific asset.

• Example 3 (Demonstrative Legacy and Creditor Priority): Maria's will includes the instruction, "I leave $20,000 to my nephew, David, to be paid from the proceeds of the sale of my art collection." However, after Maria's death, it is discovered that she had significant outstanding debts to a hospital for medical treatment.

  This scenario demonstrates a demonstrative legacy because it's a general monetary gift ($20,000) that is directed to be paid from a specific source (the art collection sale). It also highlights that the hospital's claims (as a creditor) would take priority. The estate's debts must be settled first, and only then would the remaining funds from the art collection sale be used to fulfill David's legacy, potentially reducing or eliminating it if the debts consume most of the estate's value.