An estate, in common law, is the net worth of a person at any point in time alive or dead.
It is the sum of a person’s assets – legal rights, interests and entitlements to property of any kind – less all liabilities at that time.
The term is also used to refer to the sum of a person’s assets only.
What constitutes an estate after death?
Estate administration is the process that occurs after a person dies. During this process, a person’s probate assets are collected, his or her creditors are paid, and then the remaining assets are distributed to his or her beneficiaries in accordance with his or her will.
What is the purpose of an estate?
An estate plan is created to reach the specific goals of the estate owner. However, individual estate plans depend on the size of the estate, the number of beneficiaries, and the purpose of distributions. The Will. The most common estate planning instrument is the will. A will sets forth who will inherit what property.
How does an estate work after death?
Dying without a will leaves an estate intestate, and a probate court must step in to divide up the estate using legal defaults in order to give property to surviving relatives. The court pays any unpaid debts and death expenses first, and then follows the legal guidelines.