Beneficiary vs. Legatee: Difference and Comparison
Edited by Muazma Batool — By Muneeza Rehman — Updated on September 9, 2023
A beneficiary is anyone who gains an advantage or profits from something, while a legatee specifically inherits personal property through a will.
Difference Between Beneficiary and Legatee
A beneficiary is a broad term that denotes any person or entity that receives benefits, advantages, or profits from a particular source. This source could be an insurance policy, a trust, or any legal document wherein one party benefits from another's actions or possessions. On the other hand, a legatee is a term primarily used in the context of wills and estate planning, denoting someone who inherits personal property as per the instructions of a will.
Muazma Batool
Sep 09, 2023
While both beneficiary and legatee refer to someone who benefits from another's provisions, their applications differ. Beneficiary can be used in various contexts ranging from insurance policies, where a beneficiary is named to receive benefits upon a policyholder's death, to trusts, where beneficiaries are named to receive distributions. Legatee, meanwhile, is more narrow in its use, specifically tied to inheritance matters concerning personal property.
Muazma Batool
Sep 09, 2023
It's also worth noting that while a legatee inherits personal property, real estate inheritances are typically referred to as "devisees." In contrast, beneficiaries might benefit from both real and personal properties, financial accounts, or other assets depending on the nature of the legal instrument. This distinction emphasizes the specificity of "legatee" in the realm of inheritance.
Muazma Batool
Sep 09, 2023
Furthermore, while every legatee can be considered a beneficiary (because they benefit from the will), not every beneficiary is a legatee. A person named in an insurance policy as a recipient of funds upon the policyholder's death is a beneficiary, but unless they're inheriting personal property through a will, they aren't a legatee.
Muazma Batool
Sep 09, 2023
Beneficiary vs. Legatee Comparison Chart
Definition
A person/entity benefiting from something
A person named in a will to inherit personal property
Muazma Batool
Sep 09, 2023
Context of Use
Trusts, insurance policies, legal instruments
Wills and estate planning
Muneeza Rehman
Sep 09, 2023
Type of Property
Real and personal properties, financial accounts, etc.
Specifically personal property
Muneeza Rehman
Sep 09, 2023
Relation to Real Estate
Can be a beneficiary of real estate
Personal property inheritor; real estate inheritor is "devisee"
Kaitlyn
Sep 09, 2023
Broader/Narrower Term
Broader term covering various contexts
Narrower, specific to wills and personal property inheritance
Muneeza Rehman
Sep 09, 2023
Beneficiary vs. Legatee Definitions
◉Beneficiary
An entity entitled to claim under a particular instrument.
The charity was the named beneficiary in his will.
Olivia
Sep 09, 2023
◉Legatee
An individual bequeathed a personal possession in a testament.
She was the sole legatee of her grandfather's handwritten letters.
Muazma Batool
Sep 09, 2023
◉Beneficiary
A person or entity that receives benefits from something.
Sarah was listed as the beneficiary on her father's life insurance policy.
Henry
Sep 09, 2023
◉Legatee
Someone who is willed movable properties upon the testator's death.
The legatee of the artwork was her eldest daughter.
Nolan
Sep 09, 2023
◉Beneficiary
The party named to receive profits or advantages.
As a beneficiary of the trust, Mark had certain rights to the assets.
Muazma Batool
Sep 09, 2023
◉Legatee
A person who inherits personal property through a will.
His aunt named him the legatee of her vast collection of antiques.
Nolan
Sep 09, 2023
◉Beneficiary
One who derives advantage from an action or provision.
Being a beneficiary of the scholarship, he could attend college without financial worries.
William
Sep 09, 2023
◉Legatee
The named inheritor of personal items in a legal testament.
The watch, passed down for generations, was finally given to the youngest legatee.
Muazma Batool
Sep 09, 2023
◉Beneficiary
One that receives a benefit
I am the beneficiary of your generosity.
Muneeza Rehman
May 03, 2023
◉Legatee
A recipient of personal assets as stipulated by a will.
As the legatee, he took possession of the family heirlooms.
Muneeza Rehman
Sep 09, 2023
◉Beneficiary
The recipient of funds, property, or other benefits, as from an insurance policy or trust.
Muneeza Rehman
May 03, 2023
◉Beneficiary
One who benefits or receives an advantage.
You are the lucky beneficiary of this special offer.
Muneeza Rehman
May 03, 2023
◉Beneficiary
(legal) One who benefits from the distribution, especially out of a trust or estate.
If any beneficiary does not survive the Settlor for a period of 30 days then the Trustee shall distribute that beneficiary’s share to the surviving beneficiaries by right of representation.
Muneeza Rehman
May 03, 2023
◉Beneficiary
(insurance) One who benefits from the payout of an insurance policy.
Muneeza Rehman
May 03, 2023
◉Beneficiary
Holding some office or valuable possession, in subordination to another; holding under a feudal or other superior; having a dependent and secondary possession.
Muneeza Rehman
May 03, 2023
◉Beneficiary
Holding some office or valuable possession, in subordination to another; holding under a feudal or other superior; having a dependent and secondary possession.
A feudatory or beneficiary king of England.
Muneeza Rehman
May 03, 2023
◉Beneficiary
A feudatory or vassal; hence, one who holds a benefice and uses its proceeds.
Muneeza Rehman
May 03, 2023
◉Beneficiary
One who receives anything as a gift; one who receives a benefit or advantage; esp. one who receives help or income from an educational fund or a trust estate.
The rich men will be offering sacrifice to their Deity whose beneficiaries they are.
Muneeza Rehman
May 03, 2023
◉Beneficiary
the semantic role of the intended recipient who benefits from the happening denoted by the verb in the clause
Muneeza Rehman
May 03, 2023
◉Beneficiary
A person who is left assets in a will or by a trust.
As the primary beneficiary, she received the bulk of the inheritance.
Nolan
Sep 09, 2023
Beneficiary vs. Legatee Frequently Asked Questions
Can a beneficiary inherit real estate?
Yes, a beneficiary can inherit both real and personal properties, but when it comes to wills, a person inheriting real estate is typically termed a "devisee."
Kaitlyn
Sep 09, 2023
Can an organization be a beneficiary?
Yes, organizations, like charities, can be named beneficiaries in legal instruments, trusts, or wills.
Leo
Sep 09, 2023
If someone is a beneficiary in a trust, are they also a legatee?
Not necessarily. Being a trust beneficiary doesn't automatically make someone a legatee unless they're also inheriting personal property through a will.
Elijah
Sep 09, 2023
How does legatee differ from beneficiary?
A legatee specifically inherits personal property through a will, whereas a beneficiary can benefit from various sources.
Muazma Batool
Sep 09, 2023
What does beneficiary mean?
A beneficiary is a person or entity that gains advantage or benefits from something.
Muneeza Rehman
Sep 09, 2023
Who decides on the beneficiaries of an insurance policy?
The policyholder names the beneficiaries when setting up the insurance policy.
Muazma Batool
Sep 09, 2023
Is a legatee always a beneficiary?
Yes, a legatee, by inheriting personal property through a will, is benefiting and is therefore a beneficiary.
Muazma Batool
Sep 09, 2023
Why is the term legatee used instead of beneficiary in wills?
While both terms refer to someone benefiting, "legatee" specifically pinpoints a person inheriting personal property through a will, providing clarity in the legal context.
Henry
Sep 09, 2023
How can I ensure my desired legatee receives my personal property?
Ensure your will is legally drafted, clearly stating your wishes regarding which legatee inherits what personal property.
Henry
Sep 09, 2023
In what legal documents might I encounter the term legatee?
The term "legatee" is primarily found in wills and documents related to estate planning.
Muazma Batool
Sep 09, 2023
Content Creators
Written by
Muneeza RehmanAt Comparisons.wiki, Muneeza skillfully navigates the vast sea of information, ensuring clarity and accuracy as the lead content editor. With a keen eye for detail, she curates every comparison to enlighten and engage readers.
Edited by
Muazma BatoolAs a content editor, Muazma Batool is not just a grammar guru but a creative mastermind who breathes life into every word. With an eagle eye for detail and a passion for storytelling, she transforms bland text into engaging content that captivates audiences and drives results.
