Abatement of legacies-executorship laws and accounts, Financial Accounting

ABATEMENT OF LEGACIES

(a) If the assets, after the payment of debts, necessary expenses and specific legacies, are not sufficient to pay all the general legacies in full, the latter abate in equal proportion, and the personal representative has no right to pay one legatee in preference to another nor to retain any money on account of a legacy to himself or to any other person for whom he is a trustee; however, if the personal representative is entitled to a priority in respect of his remuneration, that priority is upheld.

(b) For the purposes of abasement, a legacy for life, a sum appropriated by the will to produce an annuity, and the value of annuity when no sum has been  appropriated to produce it, shall be treated as general legacies.

(c) Where there is a specific legacy and the assets are sufficient for the payment of debts and necessary expenses, the thing specified must be delivered to the legatee without any abatement.

(d) Where there is a demonstrative legacy, and the assets are sufficient for the payment of debts and necessary expenses, the legatee shall have a preferential claim for payment of his legacy out of the fund from which the legacy is directed to be paid until the fund is exhausted, and if the fund is exhausted, but part of the legacy still remains unpaid, he shall be entitled to rank for the remainder against the general assets as for a legacy of the amount of the unpaid remainder.

(e) If the assets are not sufficient to answer the debts and the specific legacies, an abatement shall be made from the latter rateably in proportion to their respective amounts.

(f) Where personal representatives have given such notice as may be prescribed for creditors and others to send in their claims against the estate of the deceased, the personal representatives can distribute the assets of the estate at the expiration of the time stated; they shall not be liable for the assets so distributed to any person of whose claim they have not had notice at the time of distribution.  The creditor or claimant has the right to follow the asset in the hands or persons who received them.

(g) Where personal representatives have paid any legacy which, but for the payment, would have been liable to abatement as above, they shall be entitled to call upon the legatee to refund the amount by which the legacy should have abated only if:

  • The legacy was paid under any order of the court; or
  • If and so far as the abatement is rendered necessary by discovery of a debt of which the personal representative had no notice at the time of voluntary payment of the legacy.
Posted Date: 12/13/2012 4:48:00 AM | Location : United States







Related Discussions:- Abatement of legacies-executorship laws and accounts, Assignment Help, Ask Question on Abatement of legacies-executorship laws and accounts, Get Answer, Expert's Help, Abatement of legacies-executorship laws and accounts Discussions

Write discussion on Abatement of legacies-executorship laws and accounts
Your posts are moderated
Related Questions
When a company sells a product for cash, it generally recognize the revenue. However, there are situations when it is not always clear when a company should recognize the revenue.

Q. What is Contractor Ledger? Accounts relating to contractors should be kept as personal accounts in contractor's ledger and a separate folio should be opened in the Contracto

Public Oversight Board (POB) - POB is an independent oversight board, composed of public members that monitors and evaluates peer reviews conducted by SEC Practice Section (SECPS)

Question : i) Show the interdependence of business strategy and Information Systems in an organization. ii) Distinguish using suitable examples between decision-support syst

During 2011, Lavina Corporation had cash and credit sales of $94,000 and $91,000, respectively. The company also collected accounts receivable of $53,400 and incurred expenses of $

1-Dec $92,000.00 of 5% bonds are purchased with check. Interest is paid once a year and will mature in 5 years. The market yield for these bonds is 4%.

Explain the term Reporting interval - Management accounting For most businesses, financial accounting reports are produced on an annual basis, though some large businesses prod

Looking for Income Statement and Balance Sheet for the Better USA, Inc. company for 2010 and 2011 There are two sets of numbers, after each category. The first will represent 2010

Illustration of Accounting treatment of deferred tax A Ltd., bought an item of plant at a cost of £100,000 in year 2000. The estimated useful life of the plant was 5 years and

Pinapple Inc. is deciding how to price its two lines of laptops, one of which is a light one for travel (which is called Light) and the other is a powerful one (called Power). Thes