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 is considered your estate?
An estate consists of all of the property a person owns or controls. Estate property also includes all other monies that would be generated upon the person’s death, such as through life insurance. An estate can be divided up into three categories: gross estate, residue estate and estate debt.
What is a person’s estate when they die?
When a person dies, all debts are typically settled from the person’s estate. An estate consists of cash, cars, real estate and anything else owned by the deceased that has value. If a will or declaration has been made but only applies to part of the estate, the remaining estate forms the intestate estate.
What is an estate account?
An estate account is a new account opened after someone has passed away. The named estate Executor is in charge of setting up the account and managing it. It is also the account from which the Executor distributes any applicable funds to beneficiaries of the estate.