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Simple English definitions for legal terms
legal asset
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A quick definition of legal asset:
A legal asset is something that someone owns and has value. It can be anything from cash to equipment to real estate. When someone dies or goes bankrupt, all of their legal assets are used to pay off debts or distribute to heirs. Some assets, like stocks or property, can be easily converted to cash, while others, like a building, may take more time and effort to sell.
A more thorough explanation:
A legal asset is an item that is owned and has value. It can be anything from cash, inventory, equipment, real estate, accounts receivable, to goodwill. Legal assets can be used to pay debts or distributed among beneficiaries in case of bankruptcy or death.
- Current asset: An account receivable that a company expects to collect within the next 12 months.
- Fixed asset: A piece of equipment that a business uses to produce goods or services.
- Intangible asset: A patent or trademark that a company owns and can be converted to cash.
These examples illustrate how legal assets can be different types of property that a person or business owns and can be used to generate income or pay debts.