People tend to associate the term ‘legacy’ with charities: leaving money to a good cause that you care about strongly.
Actually, a legacy can be more than that. And it doesn’t necessarily have to go to charity – though we’d be the first to agree that donating money to a worthy cause is laudable.
A legacy is simply a gift or bequest left in a person’s will. It can be either a specific sum of money, a particular item or property, or a percentage of the estate.
Legacies are a way to leave something behind after you’ve gone. They can make a real difference to the world. The RNLI estimates that six in every 10 lifeboat launches are funded by charitable bequests.
The person who leaves a legacy is known as the testator (the person who makes the will) while the person who receives the legacy is the legatee. Legacies can be either specific, general, or residuary:
Legacies can be left to anyone the testator chooses. That could include family members, friends, charities or other organisations. There are no restrictions on who can receive a legacy, as long as the person or organisation is capable of receiving it.
There are positives to be gained from leaving a legacy:
Sadly, there are some disadvantages or risks associated with leaving a legacy to charity – particularly if the bequest is a very generous one. These include:
The law allows certain individuals – such as spouses, children, and other dependents – to make a claim against an estate if they feel that they haven’t been adequately provided for in the will.
This is known as a claim under the Inheritance (Provision for Family and Dependants) Act 1975. In order to make a claim, the individual must show that they were financially dependent on the deceased, and that the deceased did not provide for them adequately in the will.
People who may have a right to contest your will are:
Courts will consider various factors when determining whether to grant the claim. These include the:
More wills are now being contested. The most common reasons for disputes are concerns over the mental capacity of the testator, family conflicts, and issues with the distribution of assets.
A survey by Direct Line suggested that one-in-four people would be prepared to contest a loved one’s will if they were unhappy with it.
One of the most interesting will instructions I had in my 29 years of practice was from an elderly lady who wished to leave her entire estate to her pet dog.
Unfortunately, this was not possible because the law regards a pet as a chattel (an item of property other than freehold land) – rather than a legal entity. Therefore, pets cannot benefit from wills.
But pets are important. They’re much-loved members of the family. You want to be sure that they’ll be well cared for after you’ve gone. Fortunately, there are other ways to ensure this happens.
One option is to set up a pet trust. This is a legal arrangement that provides for the care of a pet after the owner’s death. The trust is run by a trustee, who is responsible for managing the assets and ensuring that your pet is cared for according to your wishes.
Another option is to make arrangements with a friend or family member to care for the pet after your death. This can be done informally or through a formal agreement, such as a letter of wishes or a contract.
Contact Coles Miller Partner Anthony Weber, Head of Wills and Probate for specialist legal advice on legacies, wills, probate, powers of attorney, living wills, administration of estates, and equity release. He is accredited by Solicitors for the Elderly, helping elderly or vulnerable people to manage their affairs.
Anthony’s work includes dealing with the Office of the Public Guardian and the appointment of deputies to manage the affairs of those who have lost mental capacity. He is based at our Fleetsbridge office.