When an individual dies, his/her estate will be evaluated in order to determine the total value of his/her assets. This evaluation will not only consider an individual’s tangible assets, but also any intangible assets that may exist. Therefore, it is important for an individual to understand the difference between tangible assets and intangible assets.
A tangible assets is something that exists physically. This type of asset can usually been seen or touched. An individual who inherits a tangible asset will likely benefit from this asset immediately. A house and a motor vehicle are two examples of tangible assets that are frequently included in inheritances. Other types of tangible assets include jewelry, furniture, monetary funds, retirement funds, and pensions. A tangible asset will be allocated to a relative or a friend following an individual’s death, either based upon the specifications included in his/her will, or the laws or intestacy.
An intangible asset is an asset that does not physically or materially exist. Though an individual may not be able to view or touch an intangible asset, it can still be extremely valuable. In most cases, it is companies that possess intangible assets, such as business contracts.
However, there are some instances in which an individual can hold this type of asset. Some examples of intangible assets that may be owned by an individual include patents, trademarks, and copyrights. Although an individual may not be able to observe the benefits of these assets immediately, they can be very advantageous. Like all assets, an individual may bestow intangible assets on a loved one in the event that he/she dies.