Real Estate Glossary

What is Estate?

Estate refers to all the assets and property that a person owns. When a person passes away, their estate is used to pay any debts and taxes they may have, and then the remaining assets are distributed to their heirs or beneficiaries according to the terms of their will or according to the laws of inheritance in the absence of a will. An estate can include real estate, personal property, investments, and cash, among other things. It can also refer to the total value of a person's assets, which can be used to determine the amount of taxes due on the assets when the person dies. An individual's estate is also what's being considered when people talk about estate planning, where people set up legal documents, trusts, and make investment decisions to ensure the assets pass on to the next generation in the most tax-efficient and desired way.