Oregon 30-Hour Real Estate Law Practice Test

Your aunt's property was used to pay her tax bill after bequeathing it to you. Is this legal?

1. No, bequests take precedence over debts

2. Yes, due to operation of law

3. No, you need to formally accept the bequest

4. Yes, but only if you were notified

The correct answer is: Yes, due to operation of law

The situation where your aunt's property was used to pay her tax bill after she bequeathed it to you is legal due to the operation of law. When a person passes away, their estate must settle any outstanding debts and liabilities before distributing the remaining assets to the heirs or beneficiaries. This process is governed by probate law, which ensures that all creditors are paid before heirs receive their inheritance. In this context, the tax bill represents a debt of the estate. Since the property was part of the estate, the law allows the estate to use it to cover these debts. This ensures that the financial obligations of the deceased are fulfilled, and creditors are paid, which is a fundamental principle of estate management. Therefore, the bequest is subject to the estate's liabilities and can be used to settle these debts, including tax obligations. Other choices may suggest a misunderstanding of how debts and bequests interact. For example, the idea that bequests take precedence over debts does not hold, as all debts must be resolved first. Similarly, the notion that formal acceptance of the bequest is necessary before debts can be settled overlooks the automatic legal processes that take precedence. Additionally, while being notified can be important in some contexts, it does not change the legal requirement of