Gross estate is a term used to refer to the total value of an individual’s assets at the time of their death. This includes the value of tangible assets such as real estate and vehicles, as well as intangible assets such as stocks, bonds, money, investments and other financial instruments. The gross estate consists of all property and assets owned by the decedent either as of the time of death or with a transfer of ownership in the name of the decedent.

Gross estate does not take into account nor subtract liabilities, such as outstanding debts, mortgages, and other types of legal obligations. This means that the gross estate value is calculated without any of the debt obligations or tax liabilities.

The net estate is calculated by the estate attorney and is the final estate value which is calculated after subtracting the liabilities and taxes. The remainder is then divided among the beneficiaries of the estate according to the terms of the will.

Typically, when a person dies, the estate attorney will be required to prepare a detailed inventory of the gross estate value. This inventory may include a property appraisal or assessment of the decedent’s assets, as well as a list of their creditors or debts. The inventory must also identify all of the individual’s assets that are subject to probate, such as stocks, bonds, and wills.

Once this is done, the estate attorney will then proceed to deduct all necessary liabilities, taxes, and special charges from the gross estate value. This will give the net estate value, which is often much lower than the gross estate value and can impact the amount of the estate which is available to be distributed among the beneficiaries.

For this reason, it is important for people to review their estate planning documents with an attorney prior to their death, and make sure to include a clause in their will that specifically outlines the net estate value to be divided among the beneficiaries. It is also important for individuals to make sure that their assets are properly included in the inventory and that all taxes and liabilities are accurately taken into account. Lastly, it is important to keep track of all assets and to notify the estate attorney of any changes to the gross estate value prior to the decedent’s passing. Doing so can help to ensure that there are no surprises when it comes to the final estate value.