IHTM12082 - Legacies and devises: classification of legacies and devises
The following table describes the different types of legacies and devises that appear in a will
| Legacy or bequest | a testamentary gift of personal or moveable property |
| Specific legacy | a gift of a particular asset of personal estate such as ‘my gold watch’ |
| Demonstrative legacy | a gift of a general
nature directed to be paid out of a particular fund such as
‘£500 out of my 1000 ICI plc ordinary shares’
The distinction between this and a specific legacy is one of intention. Here, if the ICI holding was insufficient at death, either totally or partially, the balance will be paid out of residue. |
| General legacy | a gift of an item
irrespective of whether the deceased owned such an item at death.
A gift of (i) ‘1000 ICI plc ordinary shares’ is a general legacy whereas a gift of (ii) 'my 1000 ICI shares’ is a specific legacy. If the testator did not own 1000 ICI shares at his death the executors would have to buy them for the beneficiary in case (i) or provide the purchase money in lieu. In case (ii) however the gift would be adeemed ( IHTM12083) if the testator had no such holding at death and so the beneficiary gets nothing. |
| Pecuniary legacy | a gift of a sum of money
It may be either a general legacy, ‘£1,000 to A’, or a specific legacy, ‘the £1,000 in my Barclays deposit account to A’, or a demonstrative legacy '£1,000 out of my Woolwich Plc account to A'. Where the testator directs that a devise or bequest or payment is to be taken free of tax this is an additional (pecuniary) benefit conferred on the beneficiary. This is why you must gross up ( IHTM26001) tax free gifts (where the residue is wholly or partly exempt) in accordance with IHTA84/S38. A specific pecuniary gift also arises where the will provides that a person who owes the testator money is forgiven the debt. That debt is cancelled and no longer repayable. |
| Devise | a gift of real or heritable property that is freehold property and not leasehold property |
| Specific devise | a gift of a particular named item of real or heritable property |
| Residuary devise, legacy or bequest | a gift of the remainder of the estate after all other legacies and devises and payment of all debts and expenses (including IHT) have been made. |
