This is Chamber's online dictionary definition of legend:
legend noun 1 a traditional story which has popularly come to be regarded as true, but has not been confirmed as such. 2 such stories collectively. 3 someone famous about whom popularly-believed stories are told � a legend in her own lifetime. 4 words accompanying a map or picture, etc which explain the symbols used. 5 an inscription on a coin, medal or coat of arms. 6 originally the story of a saint's life.
ETYMOLOGY: 14c: from Latin legenda things to be read.
Not sure why you think a person has to be dead to be a legend but now that Humph has passed away he satisfies yir definition.
Regarding "literally" I mind on watching a tennis match in which the commentator said one player was winning because his opponent was literally being torn apart. I mind on thinking it was no wonder he was losing if he had no arms or legs left...