What does the term 'legacy' typically refer to?

The term 'legacy' typically refers to a bequest of cash or other assets left in a will. In estate planning, a legacy is often specifically associated with monetary gifts or tangible property that a testator wishes to pass on to beneficiaries after their death. This aligns with the common understanding of a legacy in legal contexts as a provision made in a will.

While the other options present related concepts, they do not accurately define 'legacy.' For instance, the first option refers to the process of liquidating assets, which is more about estate administration rather than the bequest itself. The concept of a contract regarding inheritance relates more closely to trusts and other legal instruments and not specifically to the term 'legacy.' Lastly, the mechanism for distributing property in a lease does not pertain to legacies, which are primarily connected to wills and inheritance rather than lease agreements. Thus, the definition as a bequest of cash left in a will is the most precise understanding of the term 'legacy.'