An estate is an individual’s assets, including intellectual property, distributed through a will or local laws. In bankruptcy, it covers assets sold to cover debt. Estate tax is levied on taxable assets. Without a will, local laws determine heirs. Conflict may arise without a valid will.
In law, an estate is the term for an individual’s assets, all of a person’s money and property that have an established financial value. This will include intellectual property, such as copyrights, patents and trademarks, anything that can be transferred to another party when necessary. An estate generally takes effect as such only when a person files for bankruptcy or dies and the property must be distributed to others. Upon the death of a person, this property can be distributed through a will, a legally binding document. If there is no will, the person’s assets will be distributed in accordance with applicable local laws.
Inheritance law is one of the oldest forms of legal establishment. Ancient societies such as Egypt, Rome, and China were concerned with the distribution of a deceased person’s property, at least among the wealthy and powerful classes. Modern inheritance law had its origins in medieval Europe, particularly the common law of nations like England. Today, the laws governing the distribution of an estate vary widely from country to country, and sometimes vary by local region, such as states or provinces.
In bankruptcy, an individual’s estate is the sum of their assets that can be sold or distributed to cover outstanding debt. This is generally determined by the legal procedure that governs a bankruptcy case; Some personal property is exempt from being seized by creditors. The term estate does not apply to the assets of a company that fails.
When people die, their assets are distributed according to local laws. In most nations, these assets are taxable. This is called an estate tax or an inheritance tax and is levied on the estate or heirs. If the person left a will, the remaining property is distributed according to the wishes of the deceased, a process called probate. This is overseen by a person called an executor, usually named as such in a will or other legal documents. While spouses, children, and other family members are the most common beneficiaries, any person or party can be designated to inherit a will.
If a person has not left a will, the estate is considered intestate. In these cases, local laws will determine who gets the deceased person’s assets, usually the closest living relatives, called relatives. In the United States, the American Bar Association estimates that only 40 percent of all Americans have a valid will. This can often cause conflict, particularly in the case of single romantic partners, who are generally not recognized by probate laws, no matter how long the relationship lasts. Gay couples are especially vulnerable to this type of conflict, as many jurisdictions do not allow them to marry, and family members are often dismissive or hostile towards a person’s gay partner.
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