What is the difference between an inheritance and a legacy?

Question

José Manuel Alburquerque · Accepted Answer

The heir receives the deceased's estate as a whole, with its assets and also with its debts. The legatee receives only a specific asset or right, such as a flat, a sum of money or a usufruct. The legatee is not liable for the debts with his or her own assets, but the debts are paid before the legacies. He or she normally has to ask the heir or the executor to hand over what has been left to him or her. The heir The heir takes the place of the deceased. He or she keeps the deceased's assets and rights, takes on the debts and must carry out what the will provides, such as handing over the legacies. That is why in Catalonia every will must appoint at least one heir, except in Tortosa or where a universal executor is appointed. If the heir simply accepts the inheritance, he or she is also liable for the deceased's debts with his or her own assets. To avoid this, the heir must make an inventory of the estate within six months of knowing, or being able to know, that he or she is an heir: It can be made before a notary or in the tax return for the “impuesto de sucesiones”, the Spanish inheritance tax, if the return is filed within those six months. It is effective even if the heir has already accepted the inheritance. With an inventory, the heir is liable for the debts only up to the value of the inherited assets. If it is not made in time, the heir loses that protection. The legatee The legatee does not take the place of the deceased but receives something specific: The legatee is not liable for the deceased's debts with his or her own assets, but the debts are paid before the legacies. If what remains is not enough, the heir can reduce the legacies. If the heir has made an inventory before a notary, he or she can also reduce them so as to keep a quarter of the estate, after deducting the debts and the forced shares (“legítimas”), unless the will prohibits it. If the legatee is left a specific asset of the deceased, it belongs to him or her from the day of death, even if he or she does not yet have it. The legatee cannot simply take it. He or she has to ask the heir or the executor to hand it over, unless the will allows the legatee to take it, he or she is also an heir or has been left the usufruct of the whole estate, as is usually done with the widow or widower. If the heir does not make up his or her mind, once a month has passed since the death the legatee can ask a notary to formally call on the heir to say whether he or she accepts. If the heir does not accept before a notary within two months, as a general rule he or she is deemed to have renounced, but the legacy remains valid. These rules are those of Catalan law. Under the Spanish Civil Code (“Código Civil”) some of them change, such as the time limit for the inventory or what happens if the heir does not reply to the notary. Taxes Heirs and legatees each pay inheritance tax on what they receive. Anyone who receives urban property or its usufruct, whether heir or legatee, must also file the “plusvalía municipal”, the municipal capital gains tax, with the town council.