Business and Personal Finance Dictionary

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• ESTATE
  
  Your estate is what you leave behind, financially speaking, when you die. To figure its worth, your assets are valued to determine your gross estate. The assets may include cash, investments, retirement accounts, business interests, real estate, precious objects and antiques, and personal effects. Then all of your outstanding debts, which may include income taxes, loans, or other obligations, are paid, plus any costs of settling the estate are subtracted from the gross estate. If the amount that's left is larger than the amount you can leave to your heirs tax free, you have a taxable estate, and federal estate taxes will be due. Depending on the state where you live and the size of your taxable estate, there may be additional state taxes as well. After any taxes that may be due are paid, what remains is distributed among your heirs according to the terms of your will or the rulings of a court, if you didn't leave a will.
  
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