We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Taxation

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is an Estate?

By Alan Rankin
Updated: May 16, 2024
Views: 40,749
Share

In law, an estate is the term for an individual’s assets, all of a person's money and property that have an established financial value. This will include intellectual property such as copyrights, patents, and trademarks — anything that can be transferred to another party when necessary. An estate usually comes into effect as such only when a person declares bankruptcy or dies and the property must be distributed to others. Upon a person’s death, this property can be distributed by a will, a legally binding document. If no will exists, the person’s assets will be distributed according to applicable local laws.

Inheritance law is one of the oldest forms of legal establishment. Ancient societies such as Egypt, Rome, and China were concerned with the distribution of a deceased person’s property, at least among the wealthy and powerful classes. Modern inheritance law had its origins in medieval Europe, particularly the common law of nations such as England. In the present day, laws governing the distribution of an estate vary widely from nation to nation and sometimes vary by local regions such as states or provinces.

In the case of bankruptcy, an individual’s estate is the sum of his or her assets that can be sold or distributed to cover outstanding debt. This is usually determined by the legal proceeding governing a bankruptcy case; some personal property is exempt from being seized by creditors. The term estate is not applied to the assets of a business that goes bankrupt.

When people die, their assets are distributed according to local laws. In most nations, these assets are taxable. This is called an estate tax or an inheritance tax and is applied to the estate or the inheritors. If the person left a will, the remaining property is distributed according to the deceased person’s wishes, a process called probate. This is supervised by a person called an executor, usually named as such in the will or other legal documents. While spouses, children, and other family members are the most common beneficiaries, any person or party can be designated to inherit property in a will.

If a person has not left a will, the estate is considered intestate. In these cases, local laws will determine who gets the deceased person’s assets, usually the closest living relatives, called the next of kin. In the United States, the American Bar Association estimates that only 40 percent of all Americans have a valid will. This can often cause conflict, particularly in the case of unmarried romantic partners, who are usually not recognized by probate laws, no matter how long the relationship lasted. Homosexual couples are especially vulnerable to this kind of conflict, as many jurisdictions do not allow them to marry, and family members are often dismissive or outright hostile to a person’s gay partner.

Share
SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
By Balto123456 — On Aug 23, 2019

What if I can prove my mother’s sister had financially exploited my deceased mother, and my mother passed away 10 years ago?

Can I claim I have found assets that wer stolen from her sister? Like real property. My aunt was not a bona fide purchaser, nor did she inherit the three pieces of real estate she has sold. Nothing was a gift. Can I reopen my mother’s estate? Actually, I never closed it.

By anon340162 — On Jun 30, 2013

Do you need an appraisal even if you already have one?

Share
https://www.smartcapitalmind.com/what-is-an-estate.htm
Copy this link
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.