Legal Speak Made Easy - “Beneficiary”, “Heir” or “Legatee”?

Commonly used interchangeably in the context of wills and estate planning, these terms do in fact carry different meanings, and the distinction can be important. Simply put, a “beneficiary” is anyone who benefits under a will. A “legatee” is a type of beneficiary who is left a specific item, amount or benefit (e.g. “I bequeath R100,000 to Mary”). An “heir” on the other hand, is a beneficiary who is left the residue of the estate (or a percentage of the residue) after all other beneficiaries, estate debts and administration costs are settled. 

A final thought – if you haven’t heard of a legatee before, you’re in good company. It’s used mostly in legal circles because “beneficiary” and “heir” are more widely understood by lay clients and often used as umbrella terms covering all three concepts. 

Provided by Anthony Whatmore & Company

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