Opinion ID: 2311222
Heading Depth: 1
Heading Rank: 1

Heading: Priority of gifts under the will

Text: Appellants first argue that if the testator's gifts exceed the assets available for distribution, the law of abatement, as set forth in Section 751 of the Fiduciaries Act of 1949, April 18, P.L. 512, Article VII, Section 751 (20 P.S. § 320.751) entitles their specific devise to priority over the surviving spouse's general bequest. This contention is frivolous. Section 751 clearly provides that any general bequest has priority over any property devised or bequeathed in a residuary clause. See Greenlee Estate, 14 Pa.D. & C.2d 627 (O.C. Allegheny 1958) affirmed in 394 Pa. 144, 146 A.2d 286 (1958). See also Heilman Estate, 13 Pa.D. & C.2d 440 (O.C. Lehigh 1958). Just as clearly, item five of the will is a residuary clause, and appellants' devise is within that clause. Thus the appellants' devise was to be fulfilled only to the extent possible from assets remaining after satisfaction of all other non-residuary legacies, debts and administrative costs. See Folwell Estate, 12 Pa.D. & C.2d 552 (O. C. Montgomery 1957). Appellants also assert the ill-founded proposition that decedent's provision at the end of his will for his residuary estate to bear the burden of all state inheritance taxes constituted a general cash bequest [to legatees who would otherwise bear the burden of such taxes] which must abate prior to appellant's specific devise. Stated otherwise, the surviving spouse must be taxed on a pro rata basis before the appellants' devise can abate. The Inheritance and Estate Tax Act of June 1961, P.L. 373, § 718, 72 Pa. S. § 2485-718 specifically provides that a decedent may assign taxes to whichever beneficiaries he wishes but that if no assignment is made and if there is a residuary estate, it must bear the burden of inheritance taxes. Thus even without testator's directive, the residuary legatees would bear the tax burden. Woolett Estate, 461 Pa. 703, 337 A.2d 837 (1975). See Krogman Estate, 40 Pa.D. & C.2d 462, 464-65 (O.C. Phila. 1966). [5] Here, testator made clear his intent to benefit the non-residuary legatees by requiring that all legatees be given their dispositions in full to the extent there was any residuary principal. It would be absurd to reduce a favored legatee's gift in order to pay taxes as appellants suggest when such result would be against both the statutory tax scheme and the clear intent of this testator.