Legacy

Contrary to the statutory provisions, the terms "inheritance" and "legacy" are not generally distinguished in common parlance. The law expressly distinguishes between a legacy and an inheritance.

Section 1939 BGB states:

While the heir becomes the direct legal successor of the testator, the legatee merely receives the right to have the object of the legacy transferred from the estate.

"The testator may, by will, confer a pecuniary benefit on another without appointing him as heir (legacy)."

Example:

A cash legacy of EUR 10,000.00 is stipulated in the will. The legatee can turn to the heir and demand the surrender of the sum of money.

This means that the legatee does not become the owner of the bequest as soon as the estate is inherited. The legatee can only demand the return of the bequest from the heir (§ 2174 BGB). The legatee can also enforce this claim against the heirs in court. If no special arrangements have been made, the legacy becomes due in accordance with Section 2176 BGB upon the death of the heir.

A bequest can, for example, be a sum of money, a property, certain objects (e.g. a bicycle, jewelry) or a right of use (e.g. usufruct or right of residence). There are various ways of structuring this, including

  • Quota legacy,

  • advance legacy,

  • elective legacy,

  • special-purpose legacy,

  • legacy for procurement.

The legatee can also disclaim the legacy (Section 2176 BGB). In this case, the six-week deadline for the heir to waive the legacy does not apply. In addition, the legatee must declare the waiver to the heir and not to the probate court.

Just like succession, a legacy can only be effectively regulated in a disposition of property upon death. This means that the arrangement of a legacy must be made either in a will or as part of an inheritance contract. It should be noted that the legatee's claim for payment is subject to the general limitation period pursuant to Section 195 BGB. This limitation period is three years. The period begins at the end of the year in which the claim to payment of the legacy arose. If the legacy relates to a property, the limitation period is ten years.

The legatee is usually informed of the accrual of the legacy by the probate court.

The above explanation is intended to provide an initial insight into the subject of legacies. It is not a substitute for advice in individual cases.

If you have specific questions or would like an assessment of your case, we are always available for an initial consultation. The costs of such a consultation amount to a maximum of EUR 190.00 plus VAT. The length of the consultation and the size of your assets are irrelevant

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Status: 03.11.2023