Your estate is all of your assets minus your liabilities.
In simpler terms, your estate is everything you own that has value (property, cash, etc.) minus your debts.
When you pass away, your estate is given to your spouse, children, or whomever you choose (known as the beneficiary).
How does this apply to your funeral plan?
Sometimes, there's money left over because the funeral costs less than what you planned for.
You can choose the person you'd like to receive the money if there is any left over. Or you can choose to have the leftover money go to your estate. (NOTE: Laws vary per state on this point so look into your state's regulations regarding the return of any leftover funeral funds.)
When you pass away, your estate will be given to whomever you assigned as the beneficiaries, based on your will.
If you do not have a will, the state will provide a list of people who are eligible to receive the estate.
Sometimes the court has to get involved if there are multiple people on the list who want the estate.
To avoid this, we recommend choosing beneficiaries or writing a will.
Learn more about writing your will HERE.