What is the term for an estate that cannot cover the debts of the deceased?

The term for an estate that cannot cover the debts of the deceased is known as an insolvent estate. This situation arises when the total liabilities of the deceased exceed the total value of their assets, meaning there are not enough resources within the estate to pay off outstanding debts. In such cases, the estate may still go through the probate process, during which the debts are assessed, and a determination is made regarding how much, if any, of the debts can be satisfied.

Understanding this concept is crucial in estate administration and probate, as it affects how creditors are handled and what heirs or beneficiaries can expect in terms of inheritances. Other terms, while related to estate management, do not specifically denote an estate's inability to meet its debts. For instance, a trust estate typically involves assets held in trust for the benefit of beneficiaries, while probate and testamentary estates relate to the legal processes for managing a deceased person's estate and the distribution of assets according to their will.