Once all claims have been satisfied, how will the balance of the estate's assets pass to the rightful heirs?

The balance of the estate's assets will pass to the rightful heirs free and clear of all liens and debts once all claims have been satisfied. This means that any debts owed by the deceased person must be paid off before the remaining assets are distributed. It is essential for the legal process of settling an estate to ensure that creditors are paid first, which can include funeral expenses, taxes, and any other legitimate claims against the estate. After these obligations are met, the heirs will receive the leftover assets without any liens or encumbrances on them, allowing them to fully inherit what is legally theirs.

The other options do not accurately reflect the legal requirements surrounding the distribution of estate assets. For instance, the mention of debt obligations would suggest that heirs are inheriting liabilities along with the assets, which goes against the principle of clearing debts before distribution. Similarly, the term "encumbered" implies that the heirs would take on liabilities or loans linked to the property, which again is not the case after debts have been settled. Lastly, specifying that assets pass as laid out in a will does not address the necessary step of satisfying debts prior to the distribution of remaining assets. Therefore, the correct understanding is that only once all debts and claims are resolved do the heirs