Mort Law Exam 2 Flashcards
Obligation according to law; responsible (Websters dictionary)
Liability
Condition of being responsible for an expense; condition of being actually or potentially subject to an obligation (Blacks Law Dictionary)
Liability
Agreement between two or more competent persons which is enforceable by law.
Contract
Elements of a contract:
Offer
Acceptance
Consideration
Parties to a contract
Offeror (FH)
Offeree (Family)
Expression of willingness to enter into a contractual agreement.
Offer
Agreement to an offer resulting in a contract.
Acceptance
What the promisor demands and receives as the price for a promise.
How one will pay cash, check, money order, property, etc.
Consideration
party who initiates or makes an offer.
Offeror (FH)
person to whom an offer is made.
Offeree (Family)
Types of contracts:
Express Implied Quasi
1
Parties express their intentions at the time of the agreement.
Oral or written
Funeral Contracts should be in writing
Examples:
At need funeral
Prefunded funeral
Also referred to as Pre-Financed
Express contract
Contract terms are implied by acts or conduct of the parties.
Example
First call
Implied contract becomes an express contract.
Person Contracting:
Not necessary the one responsible for bill
Doing so on behalf of the estate
Implied Contract
Fictional contract applied by a court For a person who is unable to contract for him/herself.
Raises an obligation in law where, in fact, the parties made no promises but imposes liability on injured party.
Example
Emergency medical care, death, comma patients, etc
In the case of the decendent
Law recognizes need for decent burial
Decendent unable to decide for him or herself
The law under the quassi-contract places the liability for burial on the estate
Quasi contract
Property of a deceased person
Consisting of:
Real property
Personal property
Estate
Land
Anything attached to land
Real property:
Tangible or intangible property
Personal property
Person effects Furniture Automobiles Jewelry Money Stocks bonds Insurance Policies
1
The condition of leaving a WILL at time of death, may or may not provide for funeral expenses.
Testate
Limitations of the estate: Size and solvency of the estate Size of the estate Status in life Reasonableness of the charges Funeral Director’s knowledge of the decedent’s financial condition. Local and ethnic customs
Size of the estate:
Amount of money available to pay funeral expenses.
Are the funeral expenses proportional to the size of the estate?
Related to “solvency”
Solvency of the estate (One can meet its debits)
Assets exceeds the liabilities / More cash than expenses – bills. (One can meet its debits)
Solvent estate
Liabilities exceed the assets, less cash than expenses – bills. (NOT able to meet debit
Estate is unable to pay debts of the decedent
Or the estate unable to pay debts of the estate)
Insolvent Estate
Amount of money available to pay funeral expenses.
Size of the estate:
Size of the ESTATE:
“As a rule, the estate is primarily responsible to pay the reasonable and necessary expenses for disposing of the body. If the estate has property, the funeral director may look to it for payment of the funeral bill. The funeral bill is not a debt of the decedent but is a charge against the estate and must, at least in part , be paid before any debts left by the decedent are met. The amount of the funeral bill which receives this preferential treatment depends upon state law.”
Status in life
Courts consideration when determining reasonableness of charges:
“Station in life” “Lifestyle”
Standard of living Economic
Religious Social
Reasonableness of the charges
Size and solvency of the estate Right of creditors to collect payment Station in life of the deceased Decedent’s religious faith Decedent’s fraternal memberships Local and contemporary customs
Funeral director’s knowledge
Of the decedent’s financial conditions
Solvency or insolvency of the estate
Related to reasonableness of the charges
Local and ethnic customs
What type of funeral arrangements are “customary” for the area?
“Traditional” vs. “non-traditional”
Related to station in life
Filing of claims
Allowable cost items of a funeral
Recognized by courts
Filing of claims Includes but not limited to -
Embalming Professional services Use of facilities Casket Clothing Transportation Cemetery or cremation cost Headstone or monument Flowers Newspaper notices Outer burial container
Filing of claims Which may be affected by -
Custom Religion Fraternal requirements Legal requirements Cemetery requirements
Priority of claim
Funeral bill typically the first claim against an estate that will be paid.
Charges must be “reasonable”
Amount may be dictated by state law.
“Allowable” vs. “preferential”