Administration

Question 1

Abatement

Answer 1

Abatement is the process of reducing testamentary gifts in cases where the estate assets are not sufficient to pay all claims against the estate and satisfy all bequests and devises.

Order:
-intestate property
-residuary estate
-general gifts
-demonstrative gifts
-specific gifts

Question 2

Liens

Answer 2

Majority/UPC: liens on specific gifts are not exonerated unless the will says so (i.e, beneficiary takes subject to the debt)

Minority: opposite

Question 3

Powers of Appointment

Answer 3

Authority granted to a person, enabling him to designate the persons who shall take property and the manner in which they shall take it.

Question 4

General POA

Answer 4

Exercisable in favor of anyone including the donee himself.

Question 5

Special POA

Answer 5

Exercisable in favor of a limited class of appointees, not including the donee.

Question 6

Exercising POA

Answer 6

A residuary clause does not exercise a POA, unless it specifies that it is devising based on POA.

POA may be exercised by implication if donee purports to dispose of property subject to the power as though it were his own, unless the donor required specific reference to the power.