Legat

What Is Legat?

A Legat, often referred to as a "bequest" in Anglo-American law, is a gift of specific property or money made to a beneficiary through a will or testamentary document. Unlike an heir who might receive a share of an entire estate, a Legat specifies a particular asset, such as a sum of cash, a piece of real estate, or specific personal belongings. This concept is fundamental to estate planning and falls under the broader category of succession law, dictating how an individual's wealth is transferred after death.

History and Origin

The concept of a legacy or bequest, similar to a Legat, has deep historical roots, evolving across various legal systems. In Roman law, upon the death of a person, the entirety of their legal rights and duties passed to a universal successor, known as the heir. Within this framework, a testator could charge their heir with "legacies," which were duties to a third party (a legatee) to provide specific sums of money or assets from the estate. This distinction, where an heir is a universal successor and a legatee receives a specific gift, persists in civil law countries, including Germany, where the term Legat is directly used.¹¹

In Anglo-American common law, the terms "legacy" and "bequest" became largely synonymous, traditionally referring to gifts of personal property, while a "devise" referred to gifts of real property. However, modern usage often blends these terms. The underlying principle, the ability to specify the disposition of property after death, has been a cornerstone of legal systems for centuries, evolving from ancient practices that sought to provide for the needs of the deceased and to distribute their effects among survivors.¹⁰,

Key Takeaways

• A Legat (bequest) is a specific gift of property or money designated in a will to a particular beneficiary.
• It differs from an inheritance, where a beneficiary receives a share of the entire estate, including any associated liability.
• Legats are a key instrument in wealth transfer and charitable giving.
• Careful drafting of a Legat is crucial to prevent ambiguity and potential legal challenges during the probate process.

Interpreting the Legat

Interpreting a Legat involves understanding the specific intentions of the deceased as outlined in their will. Clarity in defining the asset and the beneficiary is paramount. For instance, a Legat might specify "my vintage car collection" to a particular individual, or "$50,000 to my alma mater." The executor of the estate is responsible for ensuring that the Legat is fulfilled according to the terms of the will. If the specific asset bequeathed is no longer part of the estate at the time of death, or if the language is unclear, interpretation can become complex, potentially leading to disputes among beneficiaries.

Hypothetical Example

Consider an individual, Maria, who has accumulated various assets over her lifetime. In her will, she decides to leave a Legat of her rare coin collection to her nephew, Alex, who shares her passion for numismatics. Additionally, she designates a Legat of $100,000 to a local animal shelter as a form of [charitable giving]. The rest of her estate, including her home, other investments, and bank accounts, is to be divided among her children.

Upon Maria's passing, her executor, Sarah, begins the process of administering the estate. Sarah first identifies the specific coin collection and ensures its transfer to Alex as per the Legat. Concurrently, the $100,000 cash Legat is disbursed to the animal shelter. These specific distributions are prioritized from the estate's assets before the remaining property is divided among Maria's children according to her residuary instructions. This clear designation of specific items and amounts helps streamline the [estate] administration process and ensures Maria's particular wishes are honored.

Practical Applications

Legats are widely used in personal financial planning and philanthropic endeavors. Individuals often include specific bequests in their wills to ensure particular assets, such as family heirlooms, real estate, or valuable collections, are passed directly to specific individuals or organizations. They are also a common mechanism for [charitable giving], allowing individuals to support causes they care about beyond their lifetime. For example, a significant portion of charitable contributions in the U.S. comes from bequests. In 2024, giving by bequest accounted for $45.84 billion in charitable contributions.⁹ These specific gifts can be directed to universities, hospitals, environmental groups, or any other qualified non-profit organization.

Moreover, Legats can play a role in optimizing [inheritance tax] implications, though beneficiaries generally do not pay federal income tax on inherited property. The Internal Revenue Service (IRS) states that cash or the value of property acquired by bequest, devise, or inheritance is excluded from the gross income of taxpayers.⁸ However, capital gains tax may apply if inherited assets appreciate significantly after the date of death and are subsequently sold.

Limitations and Criticisms

While Legats offer precise control over asset distribution, they come with potential limitations and can be subject to challenges. One significant issue arises if the specific asset designated as a Legat is no longer owned by the testator at the time of their death—a concept known as "ademption." For instance, if a will specifies a gift of "my red sports car," but the car was sold before the testator's passing, the beneficiary may receive nothing. This highlights the importance of regularly updating a will to reflect changes in assets.

⁷Furthermore, the fulfillment of a Legat can lead to disputes among family members or other beneficiaries, especially if certain individuals feel unfairly treated or if the will's language is ambiguous. Challenges to wills often involve claims of undue influence, lack of testamentary capacity, or improper execution. T⁶hese legal battles can be costly and time-consuming, potentially eroding the estate's value and causing familial discord. Academic discussions sometimes critique the practice of bequests itself, questioning the justice of inherited wealth and its contribution to economic inequality, suggesting that the right to posthumous transfer should be considered within broader principles of equality.

⁵## Legat vs. Erbe (Heir)

The distinction between a Legat (bequest) and an Erbe (heir) is crucial, particularly in legal systems influenced by Roman civil law, like Germany's.

Confusion often arises because both Legats and inheritances involve receiving assets after someone's death. However, an Erbe (heir) assumes the full legal responsibility for the deceased's [estate], including paying off debts, before distributing the remaining assets. A Legat, by contrast, is a specific entitlement carved out of the estate, without the accompanying universal responsibilities.

FAQs

Can a Legat be challenged?

Yes, a Legat can be challenged if there are grounds to dispute the validity of the will itself (e.g., undue influence, lack of mental capacity) or if the language describing the Legat is ambiguous, leading to disputes over the testator's intentions.

⁴### Is a Legat always a financial gift?
No, a Legat can be any specific [asset], including real estate, personal property, or valuable collections, in addition to sums of money.

How is a Legat different from a general inheritance?

A Legat is a specific gift of a defined item or amount, whereas a general inheritance (what an [Erbe] or heir receives) is a share of the overall [estate] after all specific bequests and debts have been settled.

What happens if the asset designated as a Legat is no longer available?

If the specific asset for a Legat is no longer part of the estate at the time of death (e.g., sold or lost), the Legat may fail due to a legal principle called ademption, meaning the beneficiary might not receive anything in its place unless the will provides for an alternative.

³### Does a Legat have tax implications for the recipient?
Generally, the value of property received by Legat (bequest) is not subject to federal income tax in the United States. However, future income generated by the inherited asset or capital gains upon its sale may be taxable. State-level [inheritance tax] may also apply in some jurisdictions depending on the relationship between the deceased and the beneficiary.,[²¹](https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances)