Funeral claims against the decedent's estate are considered which type of claims?

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

Answer: (B)

When settling an estate, some debts are given priority because they are necessary to wind things up and to take care of the decedent’s arrangements. Funeral expenses fall into this category, so they’re treated as preferred claims against the estate. This means they’re paid from the estate’s assets before many other types of claims.

Why this is the best fit: funeral costs are known, necessary expenses tied to the disposition of remains, and they’re intended to relieve the family from carrying that burden. They don’t involve collateral like a loan would (so not a secured claim), and they aren’t contingent on future events (so not contingent). They’re also paid before ordinary unsecured debts, which is why they’re categorized as preferred.

So, funeral claims are considered preferred claims against the decedent’s estate.