The assets in Doug's estate, including the value of his home on Elm Street and its contents, are insufficient to pay in full all of the gifts provided for in his will. His heirs will receive

Question

​The assets in Doug's estate, including the value of his home on Elm Street and its contents, are insufficient to pay in full all of the gifts provided for in his will. His heirs will receive

Quizplus · Accepted Answer

Doug's estate is insufficient to cover all the gifts provided in his will, so the beneficiaries will have to receive reduced benefits. This means that each beneficiary will receive a portion of their gift according to the available assets in the estate. For example, if Doug's will stipulates that his two children are each to receive $50,000 from his estate, but there is only $75,000 in assets available, they will each receive only $37,500. This is called abatement and is a common occurrence when an estate does not have enough assets to fulfill all the gifts in a will. Option A is incorrect because seniority is not relevant in determining how assets are distributed in an estate. Option B is incorrect because the assets do not automatically pass to the state unless there are no heirs or beneficiaries named in the will. Option D is incorrect because the beneficiaries do not have the option of distributing the assets according to their wishes unless there is a provision in the will allowing for this.

​The Assets in Doug's Estate, Including the Value of His

The Assets in Doug's Estate, Including the Value of His