In general terms, an individual's estate is the total of all their assets, less all their liabilities.

For inheritance tax (IHT) purposes, an individual's estate is the aggregate of all the assets to which they are beneficially entitled, less all their liabilities. The definition includes assets held in a trust in which the deceased had an immediate post-death interest, a disabled person's interest or a transitional serial interest. However, the estate of an individual immediately before their death does not include excluded property. (Section 5, Inheritance Tax Act 1984).

For further guidance, see: