What is the order of abatement when estate assets are insufficient to cover claims?

The correct order of abatement when estate assets are insufficient to cover claims follows a specific hierarchy, starting with specific devises. Specific devises are gifts of particular items or properties, such as a specific piece of real estate or a designated amount of money. Since these gifts are tied to specific assets, they are often first in line to abate to satisfy debts or claims against the estate.

Next in the hierarchy are general legacies, which are bequests generally given without specification of where the funds are coming from, such as a certain amount of money from the estate. After general legacies, the residual estate is considered, which includes any remaining assets after all debts and specific and general legacies have been fulfilled.

Finally, if there are still outstanding claims after all of the above entities have been satisfied, intestate property—the portion of the estate that would pass to heirs under state law when there is no will—will be considered last to abate.

This progression ensures that specific and designated gifts are protected as much as possible, reflecting the intent of the testator to prioritize those specific gifts before addressing broader claims against the estate.