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Question 1
Rachel died last month. Her daughter, Gloria was appointed the executor of her estate. In paying Rachel's debts, she received a bill from Nordstrom's, a year after she received her appointment. In most jurisdictions, Gloria is required to pay this bill.
Correct
Incorrect!
Correct Under most states' 'nonclaim statutes,' a creditor has a limited amount of time to submit a claim or be forever barred from receiving payment. Here, Nordstrom's submitted its bill after the cutoff date (a year is after the cutoff date typically called for by such statutes). As such, Gloria has no obligation to pay this bill.
Incorrect! Under most states' 'nonclaim statutes,' a creditor has a limited amount of time to submit a claim or be forever barred from receiving payment. Here, Nordstrom's submitted its bill after the cutoff date (a year is after the cutoff date typically called for by such statutes). As such, Gloria has no obligation to pay this bill.
Question 2
Lewis died three weeks ago. His will designated his son, Barry as the executor of his estate. In searching through his father's paperwork, Barry discovered outstanding bills from Sears, the electric company, and Ford Motor Credit. Which bill is most likely a secured debt?
Correct
Incorrect!
Correct A secured loan involves the existence of collateral to backup the debt. Typically, secured loans are used for the purchase of homes or cars. Here, the bill to Ford Motor Credit most likely involves a loan for a vehicle purchase. As such, this would be the secured debt.
Incorrect! A secured loan involves the existence of collateral to backup the debt. Typically, secured loans are used for the purchase of homes or cars. Here, the bill to Ford Motor Credit most likely involves a loan for a vehicle purchase. As such, this would be the secured debt.
Correct
Incorrect!
Question 3
Lewis died three weeks ago. His will designated his son, Barry as the executor of his estate. In searching through his father's paperwork, Barry discovered outstanding bills from Sears, the electric company, and Ford Motor Credit. He took out an ad in the local newspaper to publicize the administration of his father's estate. Does this ad constitutes proper notice?
Correct
Incorrect!
Correct Generally, known and ascertainable creditors, either secured or unsecured and secured creditors should receive personal notice, typically by registered or certified mail. Here, the three creditors are known, plus one is a secured creditor. As such, they should receive personal notice.
Incorrect! Generally, known and ascertainable creditors, either secured or unsecured and secured creditors should receive personal notice, typically by registered or certified mail. Here, the three creditors are known, plus one is a secured creditor. As such, they should receive personal notice.
Question 4
Six months ago, Phoebe's cousin, Tia, was injured on her property. To recover the cost of her medical treatment for a broken leg, Tia sued Phoebe for the $1,850. Phoebe did not want to put in a claim with her homeowner's insurance company because she was afraid the company would cancel her policy. Before the case was settled, Phoebe died. Who is liable for the medical expenses?
Correct In most jurisdictions, this type of tort claim would survive Phoebe's death. As such, Tia would receive reimbursement for her medical expenses from Tia's estate, if she wins the case.
Incorrect! In most jurisdictions, this type of tort claim would survive Phoebe's death. As such, Tia would receive reimbursement for her medical expenses from Tia's estate, if she wins the case.
Correct
Incorrect!
Correct
Incorrect!
Question 5
Rachel died last month. Her daughter, Gloria was appointed the executor of her estate. In paying Rachel's debts, she discovered that Rachel had disputed a charge on her Diner's Club bill. Gloria is required to pay this bill.
Correct
Incorrect!
Correct A claim is considered 'contingent' if no one can ascertain at the decedent's death whether the claim will ever become due. If the amount is resolved either within the statute of limitations period or nonclaim statute cutoff date, Gloria would be obligated to pay the bill. However, today, she is not required to make the payment.
Incorrect! A claim is considered 'contingent' if no one can ascertain at the decedent's death whether the claim will ever become due. If the amount is resolved either within the statute of limitations period or nonclaim statute cutoff date, Gloria would be obligated to pay the bill. However, today, she is not required to make the payment.