IHTM12081 - Legacies and devises: background

The term 'legacy' or 'bequest' refers to a gift of money, chattels, or some other personal or moveable estate.

Legacies ( IHTM12082) are usually divided into three classes, specific legacies, general legacies and demonstrative legacies.

A devise is a gift by will of real or heritable property.

A residuary legacy or devise is a gift of what remains after payment of all debts, liabilities, expenses and other legacies.

Importance of classification

Different classifications are relevant for different purposes. These are summarised as follows

• Ademption ( IHTM12083) - this only applies to specific legacies
• Abatement ( IHTM12086) - the order in which legacies are abated when there are insufficient funds in the estate to pay them in full
• Interest - this is generally payable from death on specific legacies, whereas a general or demonstrative legacy carries interest from the time at which it is payable (usually one year after the death)
• Expenses of a legacy - unless the testator ( IHTM12001) otherwise directs, the expenses incurred by the personal representatives ( IHTM05012) in the upkeep of the subject-matter of a specific devise or legacy are borne by the beneficiary. Expenses as regards any other assets are payable out of the testator's estate as administration expenses.
• Incidence of debts ( IHTM12091) - the order in which legacies are to applied in satisfaction of the testator's debts.