**Inheritance** (noun) — Property, money, or other assets received by an heir or beneficiary from the estate of a deceased person, either according to the terms of a will or under the laws of intestate succession. The act of receiving such property is also referred to as inheriting.
Your inheritance is what you receive when someone dies and leaves you property, money, or other assets.
You might inherit because the person named you as a beneficiary in their will. Or you might inherit under the law if the person died without a will—in that case, you're inheriting as their heir, and the law determines who gets what based on your family relationship.
Inheritance can include almost anything: houses, land, bank accounts, shares, personal belongings, business interests, and more. It can also include debts and obligations in some circumstances, though in most modern jurisdictions you can't be forced to pay someone else's debts from your own money—only from the assets you inherit from their estate.
The size and nature of inheritances vary enormously. Some people inherit substantial wealth. Others receive modest amounts or sentimental items. And many people receive nothing at all, either because the deceased had little to leave or because the estate was distributed to others.
⏱ When you'll encounter this term
Understanding how inheritance works helps you think about both what you might receive from others and what you'll eventually leave behind yourself.
If you're expecting an inheritance, remember that you generally have no legal right to inherit from someone who's still alive—they can change their will at any time, spend their money however they choose, or leave everything to someone else. An inheritance only becomes yours when the person dies and their estate is distributed according to their will or the law.
When you receive an inheritance, you might have questions about tax. In Australia, there's no inheritance tax, so you won't pay tax simply for receiving the inheritance. However, if you later sell inherited assets like property or shares, you might face capital gains tax on any increase in value. In the UK, inheritance tax might be payable by the estate before you receive your inheritance, which could reduce what you ultimately get. The rules vary by jurisdiction.
If you're thinking about your own estate, consider what you want your inheritance to accomplish. Do you want to divide everything equally among your children? Provide for a partner? Support a cause you care about? Making a will gives you control over how your inheritance is distributed, rather than leaving it to the default rules about who inherits when there's no will.
**Related terms:** [Heir](/dictionary/heir), [Beneficiary](/dictionary/beneficiary), [Estate](/dictionary/estate), [Intestate succession](/dictionary/intestate-succession)
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