When the residual is not enough to cover all taxes, does it reduce the specific lump sum bequeathments or does it come out of the other non-specified bequeathments?

Asked on September 7, 2015 under Estate Planning, New York


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

When an estate is not sufficient to cover all the debts, taxes, etc., the amount received by each beneficiary is reduced proportionately to cover the debts, taxes, etc.
This is not an issue if the estate is sufficient to cover all debts, taxes, etc.

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