2023 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.