The term avails refers to the proceeds obtained from the sale of property or assets. In legal contexts, particularly in relation to life insurance, "avails" denotes the net amount received from insurance companies. It is important to note that "avails" and "proceeds" are often used interchangeably in legal documents.
Avails are commonly used in various legal practices, particularly in estate law and insurance law. They are relevant when determining the distribution of assets in a decedent's estate, especially regarding life insurance proceeds that may be exempt from certain debts. Users may encounter forms related to the declaration of avails in estate planning or probate processes, which can often be managed using templates from US Legal Forms.
Here are a couple of examples of abatement:
For instance, if a person passes away and has a life insurance policy worth $100,000, the avails from this policy would be the full amount received by the beneficiary, assuming no debts are attached to it. This amount would typically not be subject to claims from the decedent's creditors.
(hypothetical example) A homeowner sells a property for $250,000. After paying off the mortgage and closing costs, the avails from the sale might be $200,000, which can be distributed according to the homeowner's estate plan.
Examples of state differences (not exhaustive):
| State | Notes |
|---|---|
| California | Life insurance proceeds are generally exempt from creditors' claims. |
| Texas | Similar protections apply, with specific exemptions outlined in state law. |
| New York | Life insurance avails are also protected from estate claims under certain conditions. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Proceeds | The total amount received from a sale or insurance. | Avails specifically refers to the net amount after deductions. |
| Assets | All valuable items owned by an individual or estate. | Avails are a subset of assets, focusing on liquidated amounts. |
If you are dealing with avails from a sale or life insurance policy, consider the following steps:
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Avails are the net proceeds received from the sale of property or life insurance.