Glossary · UK
What is Free Estate?
The assets a deceased person owned outright in their sole name that pass under their will or the intestacy rules through the probate process.
Full Definition
The free estate refers to the property a deceased person held in their own name and was free to dispose of by will - for example sole bank accounts, shares, personal possessions and solely owned land. It is distinguished from assets that pass outside the will, such as jointly owned property held as beneficial joint tenants (which passes automatically by survivorship), most pension death benefits, and trust assets, none of which form part of the free estate even though some may still count for Inheritance Tax. The free estate is what the personal representatives actually administer under a grant of probate or letters of administration: it is gathered in, used to settle debts, funeral costs and tax, and the remainder distributed under the will or intestacy rules. The distinction matters for valuing the estate, working out who inherits what, and identifying which assets are available to meet liabilities, including any Inheritance Tax due.