Suppose decedent’s will left “$5,000 to my daughter, AMY.” What happens if assets, after paying administration costs and debts, are insufficient to pay Amy $5,000 and for other gifts and bequests? How can the executor properly apportion decedent’s assets if there is not enough to satisfy all of the estate’s obligations as well as to distribute all of the bequests in the will?
If there are no assets to satisfy the bequests, or if the assets available are insufficient to satisfy all of the gifts in full, then the gifts or bequests are said to “abate,” either entirely or proportionately, according to state law. The executor, therefore, must look to the law of his or her state to determine the order of abatement. This applies when assets are insufficient to pay all claims against the estate as well as to make distribution of the property to the beneficiaries. Each state has its own schedule of
