24 Apr What Makes Up an Estate?

When people hear the word “estate,” they often imagine mansions, yachts, and massive investments. But the truth is, everyone has an estate. If you own anything at all—even just a house and savings account—you have an estate. 

So, what actually makes up an estate, and what is not considered part of it? Let’s go over the basics.

Assets That Are Included in Your Estate

Your estate includes everything you own at the time of your death, whether it’s entirely in your name or jointly owned with someone else. These assets form the foundation of your estate. Depending on how they’re titled or assigned, they may have to go through probate before your heirs can take ownership.

Common assets in a person’s estate include things like:

• • Real estate holdings—Homes, land, and commercial or rental properties
  • Bank accounts—Savings, checking, and certificates of deposit (CDs)
  • Investments—Stocks, bonds, mutual funds, and brokerage accounts
  • Personal property—Vehicles, jewelry, furniture, artwork, and other valuables
  • Business interests—If you own a business or part of one, then it’s part of your estate
  • Digital assets—Things like cryptocurrency, online businesses, and even social media accounts (depending on platform rules)

What Is Not Considered Part of an Estate?

As far as the courts are concerned, any non-probate assets are not part of your estate. Some assets will automatically bypass probate because they have designated beneficiaries or because they are under joint ownership. 

Here are a few examples of non-probate assets:

• • Retirement accounts—IRAs and 401(k)s with designated beneficiaries
  • Life insurance policies—These assets always have named beneficiaries and are not subject to probate
  • Payable-on-death or transfer-on-death accounts—These let you name a beneficiary who inherits the asset directly, like a bank account or vehicle
  • Jointly-owned property—Like a home owned with a spouse that has rights of survivorship
  • Assets in a living trust—Trusts not only avoid probate, they also give you more control over how and when your assets are distributed

Why Does This Matter for Estate Planning?

Knowing what’s part of your estate (and what isn’t) can help you make smarter decisions. For example, you may want to place certain assets in a trust so to avoid delays in inheritance and probate fees. You will also want to review and update your beneficiary designations from time to time.

Your strategy may also shift depending on your stage in life—whether you’re working through estate planning as a couple, navigating as a blended family, or planning in your sixties. No matter your situation, the goal is the same: to protect the assets you’ve accumulated and make sure they go to the people you love.  

Let’s Build a Plan That Fits Your Estate

Whether your estate includes your home and your bank account or a diverse mix of assets, the key to successful estate planning is personalization. At Phelps LaClair, we help individuals and families of all ages and wealth levels create estate plans with clarity and confidence.

If you’re not sure what’s included in your estate, or if it’s time to update your existing plan, contact us to schedule a consultation. We’re here to help you protect your family and their future.

Photo by Tierra Mallorca on Unsplash used with permission under the creative commons license for commercial use 04/18/2025