Estates

An estate is the property that belonged to a deceased person at their death.

It includes everything the deceased owned such as their assets (property, bank accounts, investments). An executor or administrator is responsible for the deceased's debts (bills to pay).

An estate has features in common with a trust, and often a trust is formed during the administration of an estate.

An estate may become a trust

The key responsibilities for an executor and administrator are to find and collect all the deceased’s assets and pay their debts, including taxes owed by the deceased.

After the assets are collected and the debts are paid, the executor either distributes the remaining assets and money to beneficiaries or a trust is formed. The trust holds the property for the benefit of the beneficiaries.

If the estate has an administrator, the administrator distributes the remaining assets to beneficiaries as determined by law (or the assets may be held on trust before distribution to beneficiaries).