Probate & Estate Administration

Question 1

Order of Claims Paid to Creditors

Answer 1

(1) Administration expenses
(2) Funeral expenses and expenses of last illness
(3) Family allowance
(4) Debts given preference under federal law
(5) Secured claims
(6) Judgments entered against decedent during lifetime
(7) All other claims

Question 2

Abatement

Answer 2

Reducing testamentary gifts in cases where estate assets are not sufficient to pay all claims against estate and satisfy all gifts

Question 3

Abatement Priority

Answer 3

(1) Property passing by intestacy
(2) Residuary estate
(3) General legacies
(4) Specific bequests and devises

with (4) being the LAST to be abated (hence given priority)

Question 4

Exoneration of Liens

Answer 4

UPC and majority provide that liens on specifically devised property are not exonterated unless the will so directs

Question 5

Interpretation of will if ambiguous?

Answer 5

T’s ACTUAL INTENT

If court cannot find intent within four corners of the will, extrinsic evidence may be admissible