Legal Definitions - liberatio legata

Liberatio legata refers to a specific type of gift made within a last will and testament, where the gift is the forgiveness or cancellation of a debt owed to the person who has died (the testator). Instead of bequeathing money or property, the will instructs the executor to release a named individual from a financial obligation they had to the deceased, effectively treating the outstanding debt as paid.

• Example 1: Family Loan Forgiveness

  Sarah's father had lent her a significant sum of money to help her start her small business, with an agreement for repayment over several years. When her father passed away, his will contained a clause stating, "I forgive any outstanding balance on the loan made to my daughter, Sarah, for her business venture."

  This is an example of liberatio legata because Sarah's father, through his will, released her from the legal obligation to repay the debt she owed him. The gift to Sarah is the cancellation of her financial liability.

• Example 2: Employee Debt Relief

  Mr. Henderson, the owner of a manufacturing company, had provided a personal loan to his long-serving factory manager, David, to cover unexpected medical expenses. In his will, Mr. Henderson included a provision that read, "Any personal loans made by me to my employee, David Chen, are hereby discharged and shall not be collected by my estate."

  This illustrates liberatio legata as Mr. Henderson's will explicitly acts to forgive the debt David owed him. The estate cannot pursue repayment, and David receives the benefit of being freed from his financial obligation.

• Example 3: Personal Loan Waiver

  Maria had borrowed money from her close friend, Robert, to help fund her education. They had a written agreement outlining the repayment terms. After Robert's death, his will specified, "The outstanding balance of the loan made to Maria Rodriguez for her educational expenses is to be considered fully satisfied and no longer collectible."

  This demonstrates liberatio legata because Robert's will makes a specific bequest to Maria by releasing her from the debt she owed him. The gift is the waiver of her obligation to repay the loan to his estate.