Legal Assets: A Comprehensive Guide to Their Definition and Types

Definition & Meaning

Legal assets refer to the property and belongings left behind by a deceased person (decedent) that can be managed without needing a court's intervention. These assets are available for settling the decedent's debts and include various types of property, except for those legally exempt from debt liability. Legal assets are categorized into three main types:

Personal assets: These are items that the estate administrator can use to pay off debts.
Real assets: This category includes land and real estate, which may require special legal proceedings for administration.
Equitable assets: These can be either personal or real assets but typically require court involvement due to their nature, often related to stipulations in a will.

Table of content

Legal Use & context

Legal assets are primarily relevant in estate law, where they are crucial for the administration of a deceased person's estate. Understanding legal assets is important for administrators, executors, and beneficiaries involved in the probate process. Users can manage some aspects of estate administration themselves, especially with the help of legal forms available through services like US Legal Forms, which provide templates drafted by experienced attorneys.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

1. A person passes away leaving behind a house, a car, and savings in a bank account. The administrator can use these legal assets to pay off any existing debts before distributing the remaining assets to beneficiaries.

2. (Hypothetical example) A decedent includes a family heirloom in their will, which is considered an equitable asset. The administrator may need to seek court approval to distribute this asset according to the will's instructions.

State-by-state differences

Examples of state differences (not exhaustive):

State	Legal Asset Considerations
California	Has a simplified probate process for small estates under a certain value.
Texas	Allows for independent administration, which can simplify the process.
New York	Requires formal probate for most estates, with specific rules for equitable assets.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition
Probate assets	Assets that must go through the probate process to be distributed.
Non-probate assets	Assets that pass directly to beneficiaries without going through probate.
Exempt assets	Assets that are protected from creditors and not available for debt payment.

Common misunderstandings

What to do if this term applies to you

If you are dealing with legal assets after a loved one's passing, consider the following steps:

Identify all assets and categorize them as personal, real, or equitable.
Determine if any assets are exempt from debt payment.
Consider using US Legal Forms to access templates for managing the estate efficiently.
If the situation is complex or if there are disputes, consulting a legal professional is advisable.

Find the legal form that fits your case

Browse our library of 85,000+ state-specific legal templates.

This field is required

Quick facts

Typical fees: Varies by state and complexity of the estate.
Jurisdiction: Governed by state probate laws.
Possible penalties: Delays in administration can lead to additional costs or legal issues.