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An estate is the net worth of a person at any point in time. 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 issue is of special legal significance on a question of bankruptcy and death of the person. (See inheritance.) Depending on the context, the term is also used in reference to an estate in land or of a particular kind of property (such as real estate or personal estate). The term is also used to refer to the sum of a person's assets only. In the context of probate, the estate of a deceased person consists of all the property, whether real or personal, owned by the person at the time of death. Assets that pass to somebody else by operation of law (for example, property held on a joint tenancy basis), do not form part of the deceased estate, even though the person had rights to that property during his or her lifetime. Also, if the deceased owned life insurance and nominated a beneficiary of the policy, the proceeds of that policy would not pass into the deceased's estate, but would go directly to the nominated beneficiary. Similarly, superannuation death benefits can go directly to a deceased's dependent, bypassing the deceased's estate. (See will and intestacy) The estate (or assets) of a deceased person is administered by an executor (in the case of a will) or administrator (in the case of intestacy). The function of the executor and administrator is to protect the assets of the estate, pay out all expenses and the deceased's liabilities and distribute the balance in accordance with the directions in the will, or as required by law. Under US bankruptcy law, a person's estate consists of all assets or property of any kind available for distribution to creditors.[1] The estate (or assets) of a bankrupt person is administered by a trustee in bankruptcy. The legal position in all common law countries is similar in this respect.
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Estate (law) Subcategories
Estate (law) Articles
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