Estate
What It Is:
An estate is all of an individual’s property and financial assets and liabilities at the time of his or her death.
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How It Works/Example:
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.[InvestingAnswers Feature: Seven of the Most Widespread Financial Rip-Offs]
Why It Matters:
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.
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Cached on February 4, 2012, 8:46 am