At death, the value of all property owned less any liabilities is passed on to survivors.
The term “net estate” refers to the portion of a person’s estate that remains to be dispersed. It is estimated by taking the value of all the deceased person’s assets and subtracting all of the deceased person’s debts, including funeral expenses, estate administration charges, and any other permissible deductions. Federal and state estate taxes will be calculated on the basis of the net estate value. The net probate estate is the totality of a decedent’s estate that is subject to probate court administration. It does not apply to will substitutes.
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