If the Funds in an Estate Are Insufficient to Satisfy

question 40

Essay

If the funds in an estate are insufficient to satisfy all valid claims against it, state laws provide a priority for settlement.
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Required:
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a.Reorder the list of claims below in the most common order of priority:
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(1)
Wages due domestic servants for a period of not more than one year prior to date of death and medical claims for the same period.?
(2)
Taxes: income, estate, and inheritance.?
(3)
Claims having a special lien against property, but not to exceed the value of the property.?
(4)
Debts due the United States and various states.?
(5)
All other claims.?
(6)
Funeral and administrative expenses.?
(7)
Judgments of any court of competent jurisdiction.?
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b.If funds are insufficient to satisfy all of the claims within a class, explain how claims are paid.

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Definitions:

Local Markets

Regional or community-based marketplaces where goods and services are traded, often influenced by local demand and supply.

Geocentric View

An outlook in international business where a company sees the entire world as a potential market and strives to develop products or services that appeal globally.

Transnational Strategy

A business approach that involves operating globally while remaining responsive to local needs and conditions.

Divestiture

Divestiture is the process of selling off or disposing of an asset or division of a company as a strategic business decision.