Funeral claims against the decedent's estate are:

• A. Unsecured claims
• B. Preferred claims
• C. Contingent claims
• D. Unpaid claims

Answer: (B)

Funeral claims against the decedent's estate are treated as preferred claims because certain expenses related to the death are given priority in the settlement of the estate. When settling an estate, the law designates specific costs as priority debts so they can be paid first from the estate's assets, and funeral expenses fall into this category. This ensures the immediate and necessary costs of burial and related services are covered before paying other debts. Unsecured claims are general debts with no special priority, contingent claims depend on future events, and “unpaid claims” isn’t a formal ranking category, so they don’t receive the same priority as funeral expenses.