Funeral Arts National Board Practice Exam

In the case of an insolvent estate, what is typically the highest priority claim that can be made against the estate?

1. Administration expenses

2. Tax obligations

3. Funeral expenses

4. Outstanding debts

The correct answer is: Funeral expenses

In the context of an insolvent estate, funeral expenses are typically recognized as having the highest priority claim. This is because the law often prioritizes the respectful treatment of the deceased and the emotional importance of funeral arrangements for the surviving family members. Funeral expenses are seen as necessary to properly honor the deceased, and therefore, they are prioritized above other claims when distributing the limited resources of the estate. Administration expenses are necessary for managing the estate but generally come after funeral expenses in terms of priority. Tax obligations are important, yet they often follow funeral expenses and administrative costs. Outstanding debts are indeed claims against the estate, but they typically have the lowest priority compared to the aforementioned expenses. Thus, funeral expenses are recognized as the highest priority claim, reflecting the cultural and legal value placed on proper funeral rites and dignified treatment of the deceased.