The Debts of the Decedent at the Time of Death

question 126

True/False

The debts of the decedent at the time of death are deducted in calculating the taxable estate.

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Definitions:

Discharge

A written federal court order signed by a bankruptcy judge stating that the debtor is immune from creditor actions to collect debt; that is, a release from liability.

Federal Court Order

A legally binding directive issued by a federal court, requiring certain actions to be taken or ceased.

Bankruptcy Judge

A specialized judge who presides over bankruptcy cases, making decisions regarding the legal and financial affairs of individuals or businesses declaring bankruptcy.

Chapter 11

A provision under the U.S. Bankruptcy Code that allows for reorganization under the bankruptcy laws of the United States.