Graham's will leaves $100,000 to his two children, Harry and Ida. When Graham dies, he only has $80,000 to honor his bequests. Harry and Ida each receive $40,000. This is

Question

​Graham's will leaves $100,000 to his two children, Harry and Ida. When Graham dies, he only has $80,000 to honor his bequests. Harry and Ida each receive $40,000. This is

Quizplus · Accepted Answer

Abatement is the reduction in the amount of bequests when the value of the estate is insufficient to satisfy all the bequests. In this case, the total value of Graham's estate is $80,000 which is $20,000 short of the $100,000 he wished to give to his children. Therefore, each child received $40,000 which is a reduction from the original bequest.

​Graham's Will Leaves $100,000 to His Two Children, Harry and Ida

Graham's Will Leaves $100,000 to His Two Children, Harry and Ida