The term ‘estate’ has a variety of meanings depending on the context of use. It might refer to the total worth of a person minus his/her liabilities. It might also refer to land or some other kinds of property. This term is of paramount significance when used in the context of bankruptcy or a person’s death. In general terms, it can be defined as a person’s assets per se.

In Circumstance of Probate

An estate when scrutinized in the context of probate passes as any property (personal and real) that was owned by a particular person at the onset of death. Assets that pass on automatically to the beneficiary e.g. segregated funds and paid on death (P.O.D) bank accounts are not included or considered to be part of the estate of the deceased. Furthermore, any life insurance that the deceased possessed and which had a beneficiary named on the policy proceeds does not also form part of the deceased’s estate. They automatically go to the beneficiary. Other funds that are not classified under the deceased’s estate include superannuation’s death benefits. They go directly to the designated dependent.

The Impact of Death

The death of any person elicits the emergence into the scene of two people. These people come about depending on how the deceased left his/her affairs. If a will had been drafted, then the person to take care of the estate is referred to as the executor. If the deceased did not leave a will, then his/her estate will be distributed according to the laws of that particular state. This is referred to as intestacy and the person in charge of the estate under these circumstances is the administrator. Both the administrator and the executor make sure that the estate in question is well managed by taking care of liabilities and expenses. They also make sure those instructions as laid down in the will or by the law are followed meticulously.

Under bankruptcy conditions, an estate belonging to a particular bankrupt individual encompasses all assets available for disposal to creditors. A trustee in bankruptcy administers the estate.

This article is not meant as a legal advice.

Learn more from Florida Probate Lawyer Adrian Philip Thomas P. A. about the probate process under bankruptcy conditions.