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

Question

Quizplus · Accepted Answer

Expenses of administering the estate have the highest priority and must be paid first, followed by secured claims, funeral expenses, and then unsecured claims, such as medical expenses and back wages owed to employees. Federal and state income taxes are also considered unsecured claims and would be paid after other priority claims have been satisfied.

When an Estate Does Not Have Sufficient Assets to Satisfy