What is an Estate?
An estate is all of an individual’s property and financial assets and liabilities at the time of his or her death.
How Does an Estate Work?
An estate might include a home and other real estate owned by an individual, as well as valuables such as jewelry and artwork, and financial assets such as stocks and bonds. An estate may also include debt.
Why Does an Estate Matter?
The contents of an estate are distributed according to the owner’s will upon death. If the total value of the estate exceeds a certain limit, then assets passed on to heirs may be subject to an estate tax.