Paralegal Advanced Competency Exam (PACE) Practice Exam

In probate, what does the term 'claim' refer to?

1. A request for a court hearing

2. A debt owed by a debtor to another entity

3. A legal action filed in court

4. A gift designated to beneficiaries

The correct answer is: A debt owed by a debtor to another entity

In the context of probate, the term 'claim' specifically refers to a debt owed by a debtor to another entity. This encompasses any demands for payment that may arise against the deceased person's estate. During the probate process, the executor or personal representative is responsible for settling any outstanding debts of the decedent before distributing the remaining assets to the beneficiaries. When creditors have debts owed to them by the deceased, they can file claims against the estate. These claims must be validated and paid out of the estate's assets if they are deemed legitimate, ensuring that all liabilities are cleared prior to the distribution of the estate to the beneficiaries. This process is critical in protecting the interests of creditors and ensuring compliance with legal obligations arising from the estate of the decedent. Other choices, while related to legal processes, do not accurately capture the meaning of 'claim' in the context of probate. A request for a court hearing typically pertains to procedural matters within a court case, a legal action filed in court describes the initiation of a lawsuit, and a gift designated to beneficiaries refers to testamentary distributions rather than obligations or debts.