Net Estate Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Net Estate, written in plain English, along with examples of how it is used.
What is Net Estate?
It is the balance of estate after deduction of the debts, losses, funeral and administration costs and taxes from the total assets of the deceased person, is said to be net estate.
History and Meaning of Net Estate
Net estate is a term used in estate planning and refers to the amount of money and property that a person leaves behind after all of their debts and obligations have been settled. This includes funeral costs, administrative fees, and any taxes owed. Once all of these expenses have been paid, the remaining balance is known as the net estate.
Examples of Net Estate
John passed away and had a total estate value of $500,000. After settling all of his debts, taxes, and administrative fees, his net estate was determined to be $350,000.
Sarah left behind an estate worth $1,000,000. After settling all expenses, her net estate was found to be $800,000.
When David passed away, his estate was worth $250,000. After his debts, taxes, and administrative fees were paid, his net estate was $150,000.
Legal Terms Similar to Net Estate
Gross estate - This includes all of the assets and property owned by a person at the time of their death, before any deductions or expenses are taken out.
Inheritance tax - This is a tax that may be imposed on the net estate of a deceased person before it is distributed to their heirs.
Estate tax - This is a tax that may be imposed on the total value of a person's estate, including both the gross estate and any debts or expenses that are deducted to determine the net estate.