Abatement of debts and legacies

Abatement of debts and legacies is a common law doctrine of wills that holds that when the equitable assets of a deceased person are not sufficient to satisfy fully all the creditors, their debts must abate proportionately, and they must accept a dividend.In the case of legacies when the funds or assets out of which they are payable are not sufficient to pay them in full, the legacies abate in proportion, unless there is a priority given specially to any particular legacy. Annuities are also subject to the same rule as general legacies. The order of abatement usually goes as follows:Intestate property (property not disposed of in the will itself) will abate firstThe residuary estate will abate nextGeneral devises (gifts of cash) will abate nextDemonstrative devises (gifts of stock, or orders to sell property and give the proceeds to the beneficiary) will abate nextSpecific divises (gifts of tangible property) will abate last
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