2010 New York Code
EPT - Estates, Powers & Trusts
Part 1 - (13-1.1 - 13-1.4) 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
    (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.

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