What is an estate?
Your estate is everything you own minus everything you owe at death: your home, money, investments, vehicles and possessions, less debts such as mortgages and loans. It's the value of your estate that determines whether inheritance tax is due and whether probate is needed. Some assets — like jointly owned property or nominated pensions — can pass outside the estate for distribution.
Detailed explanation
It's the simple sum at the heart of estate planning.
- Assets: property, bank and savings, investments, business interests, possessions.
- Minus liabilities: mortgage, loans, cards, bills, funeral costs.
- Outside the estate for distribution: assets held as joint tenants, and pensions/policies passing by nomination (though pensions move within IHT from April 2027).
Olu owns a £300,000 home, £40,000 in savings and a £90,000 mortgage. Her estate is worth £250,000 net. Her jointly held current account, which passes automatically to her husband, doesn't form part of the estate for distribution.
- Complete the questionnaireA few guided questions about you, your family and your wishes.
- Structured reviewYour answers are checked automatically for completeness and consistency before your will is produced.
- Receive your documentsYour will and supporting paperwork are produced, ready to print.
- Sign correctlyClear instructions on signing and witnessing so the will is legally valid.
- Protect your familyYour wishes are recorded and your loved ones are spared the intestacy default.
Sources
- Wills Act 1837, section 9 (valid execution) — legislation.gov.uk
- GOV.UK — Making a will
- Citizens Advice — Wills
- Reviewed by
- ClearLegacy editorial team
- Last reviewed
- June 2026
- Next review
- December 2026
- Jurisdiction
- England & Wales
Frequently asked questions
What is an estate?
An estate is everything you own minus everything you owe at death — property, money, investments and possessions, less debts. Its value determines whether inheritance tax is due and whether probate is needed.
What is not part of your estate?
Assets held as joint tenants pass automatically to the co-owner, and pensions or life policies with a valid nomination usually pass outside the estate for distribution — although from April 2027 unused pensions count for inheritance tax.
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