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Edward and Fiona, a married couple in California, hold their home as community property. Edward writes in his will that his half goes to his mother, Gloria. Edward also has a $200,000 debt to the IRS. Edward dies. Under California law, what is the order of priority for Edward's community property share?

Correct Answer

B) Edward's share of community property is subject to his debts before distribution to Gloria under his will

Under California Probate Code §11440-11446, the debts of the deceased spouse must be paid from the deceased's estate before any distributions under the will. Edward's IRS debt is a valid claim against his estate. His half of the community property is subject to his debts, and the IRS lien must be satisfied before Gloria can receive any remaining portion of Edward's share.

Answer Options
A
Gloria inherits Edward's half free of the IRS debt because community property debts die with the spouse
B
Edward's share of community property is subject to his debts before distribution to Gloria under his will
C
The IRS lien must be satisfied from Edward's separate property first before reaching community property
D
Fiona is personally responsible for Edward's IRS debt because they held community property

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Related Topics & Key Terms

Key Terms:

community_propertyestate_debtsprobateIRS_lienProbate_Code_11440
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