Abatement

Abatement refers to the process of reducing the shares of beneficiaries in a will to cover debts and expenses of the estate. When this happens, the law dictates the order in which different types of gifts are reduced, starting with intestate property and moving through various classes of gifts.

John passed away with debts exceeding his estate's value. His will left his house to his brother, $10,000 to a friend, and the remainder to a charity. Since John had debts, the estate first abates the intestate property, then the $10,000 gift to the friend, and finally, if needed, the house to his brother, reducing each share proportionately until the debts are satisfied.

When debts call, gifts fall in a specific order!

Exams may present scenarios where students overlook the order of abatement or misinterpret the classification of gifts, leading to incorrect conclusions about which gifts are reduced first.

Questions often involve a fact pattern with multiple beneficiaries and debts, requiring students to apply the abatement order to determine how much each beneficiary will ultimately receive.