Which of the following is classified as a necessary expense when settling an estate?

In the context of settling an estate, necessary expenses refer to costs that are essential for the administration of the estate and the fulfillment of its obligations. While medical bills may be associated with a deceased person's care, they are not considered a necessary expense when it comes to the estate settlement process itself. Instead, expenses like funeral costs, legal fees, and taxes owed directly relate to the management and settlement responsibilities of the estate.

Funeral expenses are typically recognized as necessary because they are unavoidable costs that must be paid shortly after death. Similarly, legal fees are necessary for navigating the complexities of estate law and ensuring that the estate is settled correctly and according to legal requirements. Taxes owed are also critical since they represent debts that must be paid by the estate and can significantly impact its final distribution to beneficiaries.

In conclusion, viewing medical bills as a necessary expense in estate settlement overlooks the primary focus on costs directly linked to funeral arrangements, legal compliance, and tax obligations during the estate administration process.