AS'SETS (Lat. ad satis, up to what is enough). One of those terms in the law of Eng land which in itself bears evidence of a Norman origin. It is derived from the French word asses, or more exactly, in Norman-French, assetz, `enough,' or 'sufficient,' signifying the property of a deceased person, which is sufficient in the hands of his executor and heir for the payment of his debts and legacies. In strictness, there fore, the term is not applicable to the property of a person who dies intestate, and without any debts to be paid. In general acceptation, how ever, it is understood to mean the property left for distribution by a deceased person, whether testate or intestate; and in commerce, and also in bankruptcy and insolvency, the term is used to designate the stock in trade and entire prop erty of all sorts belonging to a merchant or trad ing association, or to a bankrupt or insolvent.
Assets, in the law of administration, are either personal or real, the former comprehend ing such goods, chattels, and debts as devolve on the executor, and the latter including all real estate, whether devised or descending to the heir at law. In connection with this distinction, assets are also said to be assets by descent, and assets in hand, the former of these being recov erable from the heir to whom the land descends, and so far as such lands will extend: assets in hand, again, signifying such property as a per son leaves to his executors, sufficient for the clear ing of burdens and bequests a fleeting his personal estate. Assets are also in their nature either legal or equitable, according to the nature of the remedy which may he used by creditors against the executor or heir. These distinctions were important in connection with the common-law rule that the realty of a deceased person was liable only for the payment of specialty debts (i.e.
debts secured by a sealed instrument, as a bond), unless mode liable for the payment of other debts by will. In the former case, the specialty cred itor was compelled to proceed against the heir or devisee: and in the latter case, simple contract creditors might proceed against the executor to recover from either the real estate devised or from the personal property of the decedent. In the case of equitable assets, courts of equity made no distinction between specialty and sim ple contract creditors. and distributed the assets among both classes of creditors without prefer ence. Under modern statutes all creditors are placed on an equal footing, and, where there are several creditors, the executor or administrator is bound to pay him who first obtains judgment for his debt ; and he cannot resist on the ground that nothing will be left for the other creditors. If, after exhausting the whole assets which have come to his hands, by the payment of debts in due order, he be afterwards stied by a creditor remaining unpaid, he is entitled to protect him self by an allegation that lie has fully adminis tered. or, technically, by it plea of plcue adminis trarit ; and upon this plea the creditor is enti tled to judgment that he shall be paid out of any other assets that shall come to the defendants. which is called a judgment of assets in futnro.
Assets is not a technical term in Scotland, but it is nevertheless much used in the legal business of that country. Consult the authorities referred to under ADMINISTRATION; BANKT.UPTCY IoN ; INSOLVENCY.