Assets vs estate vs. Probate Estate vs. Taxable Estate

An estate is what someone owns, while alive or dead. Assets are things of value that you own. There is much confusion in the terminlogy if you go a bit further. What you might consider an “asset” and what the IRS defines as an “asset” for your estate tax calculation can be very different (and as you would guess the IRS definition is broader). Probate estate assets are assets that pass under your will, and that won’t inlcude all of your assets.