1 / 9

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.

olwen
Télécharger la présentation

Abatement

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  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.

More Related