Legal Definitions - assets in hand

Assets in Hand

The term assets in hand refers to valuable possessions or resources that are immediately available, physically possessed, or readily accessible for use, sale, or distribution. This emphasizes the current and accessible nature of these assets, distinguishing them from assets that might be tied up, difficult to liquidate, or not yet fully acquired.

• Example 1: Managing an Estate

  When a person passes away, the executor of their estate must identify all their possessions. The assets in hand might include the cash found in their wallet, the balance in their checking account, or jewelry stored in a home safe. These items are immediately available for the executor to manage, pay debts, or distribute to beneficiaries, unlike a house that needs to be sold or a complex investment portfolio that requires time to liquidate.

• Example 2: A Retail Business's Daily Operations

  For a small clothing boutique, the assets in hand would include the cash in the register, the current inventory of garments on the display racks, and the office supplies readily available in the back room. These are the resources the business can immediately use or sell to conduct its daily operations, as opposed to a long-term lease agreement for the store premises or money owed to the business by customers (accounts receivable).

• Example 3: Corporate Liquidation

  If a company is undergoing liquidation to pay off its creditors, the liquidator would first assess the assets in hand. This could include physical cash reserves, readily marketable securities, or finished products in the warehouse that can be quickly sold. These are the most accessible resources that can be converted into funds without significant delay, unlike specialized machinery that might be difficult to sell quickly or a pending lawsuit that could take years to resolve.