Differences between inheritance and legacy

According to Spanish legislation, an inheritance includes all the assets, rights and obligations that make up the estate of a deceased person. These assets, rights and obligations do not disappear with the death of the testator, but are transferred to other persons known as heirs, whether or not there is a will. The inheritance always exists.

The legacy, on the other hand, only exists if there is a will in which the testator has expressed their wish to bequeath a specific asset. The legacy is a particular disposition by which a specific asset or right is granted to one or more specific persons, called legatees. These legatees are successors under a particular title and do not assume the debts of the deceased, although the legacy cannot prejudice the rights of the forced heirs.

• Legacy of a specific thing: The testator assigns a particular object, such as a car or a property, to a specific person.
• Legacy of a category: A good belonging to a specific category or genre is granted, such as a collection of postage stamps.
• Legacy of a quantity: A person receives a specific amount of a thing, for example, a defined sum of money.
• Legacy of alimony or periodic payment: A fixed amount is established that a person must receive regularly, such as a monthly rent payment.
• Legacy of encumbered thing: Both the bequeathed good and any associated burden, such as a mortgage, are transferred.
• Legacy of pledged or mortgaged thing: In the case of bequeathing a good with a mortgage, with this type of legacy, the legatee receives the good, but the payment of the mortgage corresponds to the heir.
• Legacy of universal usufruct: Through this legacy, the testator grants a person the right to enjoy the fruits and benefits of a good for a determined period of time, without transferring ownership of the good itself.
• Legacy of rights: Here, the testator transfers specific rights, such as the right to collect a debt or the right to an easement over a good.

1. Designation of heirs and legatees.
   Heirs can be designated by the testator in their will (voluntary heirs) or can be appointed according to the law (legal heirs). In contrast, legatees can only be expressly appointed by the testator in their will.
2. Succession of assets and debts.
   The heirs acquire ownership of all the assets, rights and debts of the deceased in their entirety, which is known as universal title. On the other hand, legatees are successors under a particular title, which means that they specifically receive the assets that have been bequeathed to them. Legatees are not responsible for the debts of the estate and will only be liable for them up to the value of the asset received as a legacy.
   However, if the available assets are not sufficient to cover the legitimate share of the heirs, the legacies may be nullified or reduced.
3. Acceptance and renunciation.
   Heirs must accept the inheritance to receive both the assets and the associated debts; otherwise, they must renounce the inheritance entirely. In contrast, legatees receive their legacy directly from the heirs or the executor, without the need to formally accept the legacy. Furthermore, legatees may choose to reject either part or all of the legacy if they so wish.
4. By the person who receives the assets.
   In the case of the inheritance, it will be received by one or several heirs. For their part, the legacy will go to the person or persons designated in the will, who are known as legatees.

It is possible to designate the same person as both legatee and universal heir, allowing them to choose between accepting the legacy or the inheritance. The beneficiaries of an inheritance may vary depending on whether it is a testate or intestate inheritance:

• In an inheritance with a will, the deceased expresses their last wishes and distributes their assets respecting the legitimate portions. In this case, they can assign assets to both heirs and legatees. When an heir simultaneously receives a legacy, this legacy is known as a prelegacy or legacy to the heir.
• In an inheritance without a will, where the person dies without having left a will, the assets are distributed among the legal heirs according to the law, and there are no legatees in this case.