NY Est Pow & Trusts L § 13-1.3 (2021)
2021 New York Laws EPT - Estates, Powers and Trusts Article 13 - Other Provisions Affecting Estates Part 1 - Assets of Decedent's Estate 13-1.3 - Assets Chargeable With Payment of Estate Obligations; Order in Which Assets Appropriated; Abatement

§ 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 dispositions.  (b) In applying such property to the payment of any item specified  in paragraph  (a),  no  distinction shall be made between real and personal property.  (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 2-1.8.  (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.