Legal Definitions - assets by descent

Assets by Descent refers to property, both real (such as land and buildings) and personal (like money, vehicles, or jewelry), that is inherited by an individual when the previous owner dies without a valid will. In such cases, the distribution of the deceased person's assets is determined by the laws of intestacy in the relevant jurisdiction, which specify a hierarchy of heirs (e.g., spouse, children, parents, siblings).

• Example 1: Children Inheriting a Home

  A widowed mother, Sarah, passes away unexpectedly without having created a will. She owned her home outright and had a significant savings account. According to the laws of intestacy in her state, her two adult children are her closest legal heirs. Therefore, Sarah's house and savings account are considered assets by descent, as they will be transferred to her children based on the state's statutory rules for inheritance without a will.

• Example 2: Parents Inheriting Personal Property

  Mark, a young single man with no children, dies in an accident. He owned a car and had a small investment portfolio, but he never drafted a will. Since Mark had no spouse or children, the state's intestacy laws would typically designate his parents as the next in line to inherit. His car and investment portfolio would thus be classified as assets by descent, passing to his parents according to the legal order of succession.

• Example 3: Distant Relatives Inheriting an Estate

  Eleanor, an elderly woman, passes away without a will. She was a widow, had no children, and her parents and siblings had all predeceased her. She owned a valuable antique collection and a small plot of undeveloped land. In this situation, the state's laws of intestacy would dictate a search for more distant relatives, such as nieces, nephews, or even cousins, to inherit her estate. Eleanor's antique collection and land would be considered assets by descent, as their ownership would be transferred to these legally recognized heirs based on the statutory rules for inheritance in the absence of a will and closer family members.