Funeral Arts National Board Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Funeral Arts National Board Exam. Utilize flashcards, multiple choice questions, and gain insightful hints with detailed explanations. Ensure your readiness for this crucial examination!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which legal term describes an estate that cannot meet its financial obligations?

Active estate
Insolvent estate
Probated estate
Revoked estate

The correct answer is: Insolvent estate

The term that accurately describes an estate unable to meet its financial obligations is "insolvent estate." An insolvent estate arises when the liabilities of the deceased person exceed the value of their assets, leaving insufficient funds to cover debts and obligations. This situation necessitates a specific legal process to determine how the remaining assets can be fairly distributed among creditors and, if possible, beneficiaries. In legal contexts, distinguishing an insolvent estate is vital as it influences the probate process and the handling of debts. Creditors have certain rights in these situations, and there are established procedures for settling the claims against the estate. Active estates, on the other hand, refer to estates that are undergoing active probate proceedings while funded and capable of meeting obligations. Probated estates are those estates that have gone through probate court for administration after a person's death, which doesn't directly relate to insolvency. A revoked estate typically refers to a situation where a previous estate plan or will has been invalidated and is not a recognized legal status of an estate's financial health.