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Simple English definitions for legal terms
deductis debitis
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A quick definition of deductis debitis:
Term: deductis debitis
Definition: Deductis debitis is a Latin term that means "the debts being deducted." In history, before determining the value of an estate, all debts had to be subtracted from the total amount. This was necessary to accurately assess the true value of the estate.
A more thorough explanation:
deductis debitis
When calculating an estate, deductis debitis means that any debts owed by the estate are subtracted from the total value before determining what is left over.
For example, if someone passes away and their estate is worth $100,000 but they owe $20,000 in debts, deductis debitis would mean that the debts are subtracted from the total value, leaving $80,000 as the remaining value of the estate.
Another example would be if a business is being sold and it has outstanding debts. The debts would need to be deducted from the sale price to determine the actual profit made from the sale.
These examples illustrate how deductis debitis is used to ensure that debts are taken into account when determining the true value of an estate or business.