Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 13-1.3
Assets chargeable with payment of estate obligations; order in
Estates, Powers & Trusts (EPT) CHAPTER 17-B, ARTICLE 13, PART 1
§ 13-1.3 Assets chargeable with payment of estate obligations; order in

which assets appropriated; abatement

(a) All of the property of a decedent, and any income therefrom in the
course of estate administration, is chargeable with the payment of:

(1) Administration and reasonable funeral expenses, debts of the
decedent and any taxes for which the estate is liable.

(2) Unless such property is specifically disposed of, any general

(b) In applying such property to the payment of any item specified in
paragraph (a), no distinction shall be made between real and personal

(c) Whenever such property is insufficient to satisfy both the estate
obligations described in subparagraph (a) (1) and all dispositions under
the will, interests in the decedent's estate abate, for the purpose of
paying such estate obligations, in the following order:

(1) Distributive shares in property not disposed of by will.

(2) Residuary dispositions.

(3) General dispositions. Demonstrative dispositions shall be treated
as general dispositions to the extent that the property or fund charged
with a demonstrative disposition has adeemed.

(4) Specific dispositions, and any income derived therefrom, ratably,
in accordance with the value of the respective interests of the
beneficiaries of such dispositions. For the purposes of this section, a
demonstrative disposition shall be treated as a specific disposition if
the property or fund charged with any demonstrative disposition has not
adeemed, to the extent of the value of such property or fund.

(5) Any disposition to a surviving spouse which qualifies for the
estate tax marital deduction.

(d) The order of abatement provided in paragraph (c) shall not apply
to the payment of an estate or other death tax, under the law of this
state or of any other jurisdiction, with respect to any property
required to be included in the gross tax estate of a decedent under the
provisions of any such law. The apportionment of such estate or other
death tax, and the abatement of interests in the decedent's estate
consequent to such apportionment, are governed by the provisions of

(e) Whenever the provisions of this section are inconsistent with the
express or implied intention of the testator to distinguish real
property from personal property or to prefer certain beneficiaries under
his will to others, the property of the estate shall be applied and the
interests of beneficiaries under the will shall abate in such manner as
is necessary to give effect to the intention of the testator.

(f) In the event that any property of the estate is applied to the
payment of estate obligations in contravention of the order of abatement
prescribed by this section, beneficiaries whose rights have been so
impaired are entitled to be indemnified by other beneficiaries or
distributees, as the case may be, so as to accomplish an abatement in
accordance with the provisions of this section, and the amount of such
indemnity shall constitute a charge on the interests of the
beneficiaries or distributees liable therefor. Nothing in this paragraph
shall relieve the personal representative of his liability to
beneficiaries whose rights have been so impaired.