In general terms, your estate includes all the property that you have an interest in or control over at the time of your death. This includes the following types of property:
- a. Personal property (household items, cars, antiques, artwork, collections).
- b. Your home(s) and other real estate interests.
- c. Cash and bank accounts.
- d. Stocks, bonds, and other investments.
- e. IRAs, 401(k) accounts and retirement benefits.
- f. Life insurance, including death benefits.
- g. Business interests.
- h. Interests in trusts in which you have the power to choose the beneficiary.
These types of property are included in the definition of your estate when talking about the property that is subject to federal and state estate taxes.
A slightly different set of properties are included your “probate estate.” Your probate estate refers to your properties which are subject to the probate courts, and which will pass under your Will, if you have one. Your probate estate includes all of the above types of property, but excludes the following categories of property:
- a. Real estate held as joint tenants or as tenants by the entirety with a surviving co-owner.
- b. Joint tenancy accounts and “payable on death” accounts, which designate the donee on your death.
- c. Assets which have a valid beneficiary designation (other than to your estate), including stocks, IRAs, retirement benefits, and insurance policies.
- d. Assets which are held in trust, such as a revocable living trust, a land trust, or an irrevocable insurance trust.