Certain taxes associated with estates can create what type of lien?

The correct answer is that certain taxes associated with estates can create a general lien. A general lien is a legal claim or right against an individual's property by a creditor, allowing the creditor to seize or sell the property to satisfy a debt. In the context of estate taxes, when taxes are owed, the government places a general lien on the entire estate, not just a specific asset. This means that the lien extends to all property owned by the estate, providing the government with a claim against the overall value of the estate until the taxes are paid.

This distinction is important because it affects the priority of claims against the estate's assets. Since a general lien encompasses all of an individual's property, it can impact how debts are settled during the distribution of an estate, ensuring that tax obligations are met before heirs receive their inheritances.

Understanding the nature of general liens in relation to estate taxes helps clarify how debts and assets are managed and illustrates the government's authority to secure tax revenue through claims on an individual's overall wealth.