The meaning of a legatee is someone who is specifically chosen in a will to receive particular items, such as jewellery, a car, or a fixed amount of money.
In this article, we’ll explore the role of a legatee - someone designated in a will to receive specific assets or sums of money upon the testator's death.
We'll cover the types of legacies, executor responsibilities, and the options available to legatees, including the right to refuse a legacy.
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The Role of a Legatee
Legatee is different from general beneficiaries under a will, who receive whatever is left of the estate after all specific gifts have been made.
By definition, being named a legatee in a will is both a big honour and also a responsibility.
Whether you're thinking about who to name as legatees in your own will or you've been named one yourself, it's important to know about the different types of legacies, what responsibilities come with it, and even how you can say no to a legacy if you need to.
Knowing all this helps you make smart choices to make sure your or your loved one’s final wishes are followed just the way they wanted.
Types of Legacies
Since there are different types of legacy that can be left under a will, there are also different definitions of the legatee, and these depend on whether the individual is a legatee of a specific, demonstrative, general or residuary estate.
- Specific Legacies: These are particular items named in the will, like a family painting or a piece of real estate.
- Demonstrative Legacies: These are specific amounts of money that must be paid from a particular source, like a certain bank account.
- General Legacies: These are unspecified amounts of money that come from the general assets of the estate.
- Residuary Legacies: After all debts, bills, and other legacies are paid, whatever remains of the estate is distributed to these residuary legatees.
Understanding the rights and responsibilities of legatees is crucial for effective estate planning. So, whether you are making a will or have been named as a legatee, this guide will help you understand how to manage these decisions.'
Most Common Legatees and Legacies in the UK
The most common legatees in UK Wills typically include close family members, such as:
- spouses or civil partners,
- children, and
- sometimes grandchildren.
These individuals are generally prioritised in inheritance planning, with many testators also including provisions for dependents who rely on them financially.
Beyond family, charities are also common beneficiaries in UK Wills, reflecting the popularity of charitable legacies as a way to support causes meaningful to the testator.
In terms of asset types, these are the most common:
- monetary gifts (pecuniary legacies)
- jewellery
- property
- heirlooms
Another common designation is the residuary legacy, where the remainder of an estate is left to one or more legatees after specific gifts, debts, and taxes are paid.
While individuals commonly receive personal items and cash, charities more often receive residuary estates or specific monetary gifts.
(Source: The National Will Registry)
Executor Responsibilities
Executors play a crucial role in making sure that everything in a will is carried out correctly according to the will's provisions and applicable laws.
Executor's key responsibilities include:
- Distributing Assets: Ensuring that each legatee receives exactly what the will specifies, whether it's a particular item or a sum of money.
- Valuing Assets: Sometimes, executors need to figure out how much certain items are worth. This is especially important for items like houses or stocks that can change in value.
- Handling Complex Issues: Executors might also face challenges like not having enough money in the estate to pay all debts and legacies, it’s important for them to handle estate debts and legacies to prevent disputes among beneficiaries. This is called estate insolvency. They also need to know what to do if a legatee doesn't want to accept a legacy, which can involve legal processes to resolve the problem.
Rights and Protections for a Legatee
A legatee has certain rights that help protect their interests during the process of settling an estate.
If legatees think that the executor is not following the will's instructions properly, they can challenge those decisions in court if they believe the will’s instructions are not being followed. This helps make sure the will is respected and followed correctly.
Additionally, specific gifts to legatees are typically protected from the deceased person's debts. This means that if there are debts, they are paid from the rest of the estate before any remaining gifts are given out, helping to protect the gifts as much as possible.
Refusing a Legacy: If a Legatee Declines?
Sometimes, a legatee may choose to refuse a legacy left to them in a will. This action is legally known as "disclaiming" a legacy. Here’s what happens and why someone might choose to do this:
Why Might a Legatee Refuse from a Legacy?
- Tax Burdens: Accepting certain legacies can have tax implications.
- Personal Beliefs: Someone might turn down an inheritance for personal or ethical reasons, especially if it involves business dealings or properties they do not agree with.
- Financial Liabilities: Some assets, like property with debts or high upkeep costs, might not be financially wise to inherit.
⚠️ Do note that refusing a legacy is an irreversible decision that may affect the estate's distribution dynamics. The process of refusing a legacy should comply with legal requirements, including timely submission of the disclaimer.
How to Refuse a Legacy?
- Written Disclaimer: A legatee must formally reject the legacy by writing a disclaimer, usually given to the executor or through a court.
- Timing is Key: The disclaimer must be made before the legatee takes or uses anything from the legacy, making sure they haven’t accepted it in any way.
- Irreversible Decision: Once a disclaimer is submitted, it cannot be taken back. It's a permanent decision that affects how the estate is divided.
Consequences of Refusing a Legacy
- Redistribution of Assets: If a legacy is refused, it usually goes to the next beneficiary listed in the will or, if there isn’t one, it follows the standard rules for someone who dies without a will.
- Estate Dynamics: Refusing a legacy can change the dynamics of an estate’s distribution, potentially increasing the shares of other beneficiaries or changing the executor’s plans for distributing the estate.
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