When officials are evaluating and determining the value of a deceased individual’s estate, only his/her current assets will be analyzed. A current asset is a tangible asset or an intangible asset that is included in an individual’s estate at the time of his/her death. Past assets are not included in an individual’s estate inventory.
Therefore, if an individual was once wealthy or owned many tangible items, his/her estate will only encompass the possessions that he/she owns on the day that he/she dies. As a result, his/her estate can not be subject to tax for assets that he/she possessed in the past. Current assets, sometimes referred to as countable assets, are assets that are usually inherited by loved ones of the deceased. Determining the market value of current assets helps to conclude the financial worth of an individual at the time of his/her death.
The term current assets is most frequently used to refer to the assets that a company possess, however, it can also be used to describe the assets included within an individual’s estate at the time that he/she died. For example, if an individual owned a home, this real estate is considered to be a current asset.
Any motor vehicles that he/she possessed are also current assets, as are any monetary funds or personal belongings. Following an individual’s death, all of his/her current assets are evaluated, in order to determine the total value of his/her estate. If his/her estate exceeds a specified amount, the estate will be taxed by the state government, and may also be taxed by the federal government.