In the estate planning arena, the term "legacy" takes on a slightly different meaning. Here, a legacy means a tangible (something which can be touched) gift or money or personal property which is passed to someone via a will.
There are three different types of legacies; general, specific, and residuary.
A "general legacy" is one that is given out at the direction of the executors. If John had died without leaving specific bequest of property or money, then his executor Bill, would direct the disposition of the legacies.
The second type of legacy is a "specific legacy". It is a bequest of a specific item or amount of money that the testator wants to leave to a certain person. For instance, if John wants to leave his daughter Mary a specific Van Gogh painting, then it is known as a specific legacy.
The specific legacy has a "relation" to the time that John made his will, since it was in his possession. If it is not in John's possession at his death, then Mary has no claim, and could not receive it.
The third type of legacy is the "residuary legacy", and is a bequest of all of the testator's personal estate that was not disposed of by the will, and is considered "residual" property.
Legacies may be considered either "absolute for life" or "in remainder". A legacy is absolute when it is given to the "legatee" (person who receives the legacy); 1; without and conditions, and 2; when it vests (available for use) immediately. A remainder legacy is given with conditions, and does not vest immediately.
When it comes to the right of the money or property acquired by the legatee, the legacies may be considered to be vested or contingent. A vested legacy is one that is one that passes to the legatee, either at present, or sometime in the future. A contingent legacy, on the other hand, is given to the legatee, but it's really uncertain as to if it will actually ever pass to him. Under contingent situations, the bequest is may or may not take place, as it hinges on an event to occur.
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