When an Estate Does Not Have Sufficient Assets to Satisfy

question 77

Multiple Choice

When an estate does not have sufficient assets to satisfy all claims against it, what claim has the highest priority?

• A) expenses of administering the estate.
• B) federal income taxes.
• C) state income taxes.
• D) medical expenses of the final illness.
• E) back wages owed to any employees.

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Definitions:

Congressional Election

The process by which members are elected to the United States Congress, consisting of the Senate and the House of Representatives.

Elected Official

An individual who has been chosen by voters to hold a public office through a democratic electoral process.

Direct Democracy

Direct democracy is a form of government in which citizens directly participate in the decision-making processes, rather than through elected representatives, often through referendums and initiatives.

Gerrymandering

The manipulation of electoral district boundaries to favor one party or class.