Florida Broker Practice Exam

What type of lien is automatically imposed against a decedent's taxable assets at death?

1. Mortgage lien

2. Estate tax lien

3. Vendor's lien

4. Construction lien

The correct answer is: Estate tax lien

The estate tax lien is a specific type of lien that is automatically imposed against a decedent's taxable assets upon their death. This lien arises to secure the payment of any estate taxes owed to the government based on the value of the decedent's estate. When a person dies, their assets are assessed for estate tax purposes, and if there are any taxes due, the estate tax lien ensures that the state or federal government has a claim to the decedent’s property until those taxes are settled. This automatic imposition provides the government with a form of security interest in the estate's assets, which must be addressed before the estate can be distributed to beneficiaries. In contrast, other types of liens such as mortgage liens, vendor's liens, and construction liens are typically associated with specific contractual agreements or services provided and do not automatically take effect upon an individual's death. These liens are created by specific actions taken by creditors or service providers and generally require some form of documentation or notice. Thus, the distinction lies in the nature of the estate tax lien as an automatic, statutory claim placed on an estate at the time of death to ensure the payment of tax obligations, making it the correct answer to the question.