Assets are possessions with value that are owned by someone. This can encompass money, real estate, machinery, and intangible assets such as goodwill. Upon someone’s death, their assets may be inherited by their heirs, known as assets by descent. Some assets can be easily converted into cash, such as funds in a bank account, while others, like land, may be more difficult to sell. Understanding an individual’s assets is crucial when they have outstanding debts, as these assets may need to be utilised to settle their obligations.
Assets by descent are the portion of an estate that is inherited by the legal heirs of a deceased person. This includes property such as a house, car, and cash, which are distributed among the heirs according to inheritance laws. Additionally, assets by descent can also refer to the assets of a bankrupt person that are used to pay debts or distributed, such as cash, inventory, equipment, real estate, accounts receivable, and goodwill.
Assets by descent refer to the property or assets that are inherited by an individual from their deceased family member, typically through intestate succession laws when there is no valid will in place.
The entitlement to assets by descent depends on the applicable laws of intestate succession. Generally, the deceased’s spouse, children, parents, and siblings are the primary beneficiaries, followed by more distant relatives if there are no immediate family members.
If there are no eligible heirs or beneficiaries for assets by descent, the property may escheat to the state, meaning it becomes the property of the government.
Yes, assets by descent can be contested if there are disputes or disagreements among potential beneficiaries regarding their entitlement or the validity of the inheritance laws. In such cases, legal proceedings may be initiated to resolve the matter.
Yes, assets by descent can be sold or transferred by the rightful heir or beneficiary once they have legally obtained ownership. However, it is important to comply with any legal requirements or restrictions that may apply.
In many jurisdictions, assets by descent may be subject to inheritance or estate taxes. The specific tax laws and rates vary depending on the jurisdiction and the value of the assets.
In some cases, assets by descent may be used to pay off the deceased’s outstanding debts or liabilities. However, the priority of debt repayment and the extent to which assets can be used for this purpose depend on the applicable laws and the specific circumstances.
Assets by descent can generally be claimed by eligible heirs, regardless of any outstanding legal obligations of the deceased. However, certain legal obligations, such as restitution orders or court-ordered payments, may have priority over the distribution of assets.
If a valid will exists, the distribution of assets by descent may be altered according to the deceased’s wishes as stated in the will. The will can specify different beneficiaries or proportions of inheritance, potentially overriding the default rules of intestate succession.
The time it takes to receive assets by descent can vary depending on various factors, including the complexity of the estate, any legal disputes, and the efficiency of the probate process. It is advisable to consult with an attorney to understand the specific timeline in your jurisdiction.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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