Legacies are gifts left to individuals (Beneficiaries) in the Will. There are different types of Legacies:

Specific, General, Pecuniary, Demonstrative and Residuary

Specific

This is a gift of a specific object or property or group of objects or property that is/are owned by you and that will be distinguished in the Will from other objects or property. Specific legacies will fail if you no longer own the object or property at the date of your death.

Example Clauses

"I give my Shakespeare fishing rod to X"; "I give my Diamond and Solitaire ring to Y";

General

Such a legacy consists of a gift of property to be provided by the estate even if that property is not actually owned by the estate at the date of your death. The Personal Representatives must acquire the object of the legacy using funds of the estate. The usual legacy would be money.

Example Clauses:

"I give £1,000.00 to A"; "I Give 5,000 shares in Company Plc to B"

Demonstrative

These legacies are effectively general legacies the funding for which is provided out of a specific fund. It is treated like a specific legacy in that the fund exists at the date of death. However, if that fund does not exist then the legacy does not fail. It will remain payable by the estate like a general legacy.

Example Clause:

"I give £500.00 to Z to be paid from my Post Office account"

Pecuniary (Financial)

This is simply a gift of money. These legacies can be any of the above.

It is important to remember that none of the above legacies have made reference to tax or the payment thereof. If the legacies are non-specific about tax then they will be left to the beneficiaries net of tax. Therefore, it is absolutely essential to ensure that your legacies clearly state that the gift is to be transferred to the beneficiary after tax has been paid.

Example Clause:

"I give £500.00 free of tax to Z to be paid from my Post Office account"

Another important issue to consider is the fact that any of the above legacies could fail because the beneficiary dies before you. What then? The subject matter of the legacy falls into your residuary estate unless other provisions are made.

Again, the legacy could fail if the identity of the beneficiary is not specific or certain. Therefore, you must ensure that the legacy provides sufficient information to ensure that the intended beneficiary is easily identifiable.

An easy example would be where you leave a gift "to my daughter". What if you have a second daughter? Full names (even nicknames) are essential.

Residue

This is a further legacy. It is made up of the balance of your net estate after the payment of all liabilities, Inheritance Tax, legacies and, if relevant, a sum equivalent to the current Nil Rate Band. The usual beneficiary to your residual estate is either your spouse, partner or, in the event of you both dying at the same time, such of your children that survive you on trust or to them absolutely (without any reservations) if they attain a certain age. This is usually 21.

Example Clause:

"I give the residue of my estate to [full name]

Again, it is normal for the gift of residue to be net of expenses.

Example Clause:

"I give the residue of my estate after the payment of all liabilities, debts, taxes, funeral expenses and testamentary dispositions (legacies) to [full name].