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Abatement

Abatement. Issue. When testator dies without enough property to pay all debts and gifts, which gifts have priority? Note: Priority of debts is covered in Texas Estate Administration. Abatement Order PC § 322B; EC § 355.109. 1. Intestate Property, if any.

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Abatement

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  1. Abatement

  2. Issue • When testator dies without enough property to pay all debts and gifts, which gifts have priority? • Note: Priority of debts is covered in Texas Estate Administration.

  3. Abatement OrderPC§ 322B; EC § 355.109 • 1. Intestate Property, if any.

  4. Abatement OrderPC § 322B; EC § 355.109 • 1. Intestate Property, if any. • 2. Residuary gift (personal then real).

  5. Abatement OrderPC § 322B; EC § 355.109 • 1. Intestate Property, if any. • 2. Residuary gift (personal, then real). • 3. General gifts (personal, then real).

  6. Abatement OrderPC § 322B; EC § 355.109 • 1. Intestate Property, if any. • 2. Residuary gift (personal, then real). • 3. General gifts (personal, then real). • 4. Specific gifts (personal, then real).

  7. Example – Note 2, p. 156 • Within a group, abatement is pro rata.

  8. Other issues • 1. Testator can specify abatement order different from statutory order.

  9. Other issues • 2. Abatement order is not applicable to estate taxes.

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