In the context of funeral claims, which type of claim is paid before other debts?

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

Answer: (B)

The main idea here is how debts are prioritized when settling an estate. Funeral expenses are treated as a preferred (priority) claim, which means they’re paid before most other debts. This priority ensures that the costs of arranging the funeral are covered early, so the deceased’s family isn’t burdened with those expenses.

Secured claims have the highest priority because they’re backed by collateral, so they’re paid from the value of that collateral first. Contingent claims depend on a future event and aren’t guaranteed, so they aren’t paid before definite, priority claims. Unsecured claims are paid after preferred (priority) claims and after secured debts are addressed.

So, the type of claim paid before other debts in this context is the preferred claim.