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
Pre-acquisition losses in subsidiary company on date of acquisition If the subsidiary company has a loss on the date of acquisition i.e. a debit balance in the retained profits

Q. Explain Forward loading with example? Terms may involve option to be issued with price to be determined based upon lowest price as of the issue date or for the subsequent 30

URL services has two divisions. Basic webpages and custom webpages. Ricky Vega, Custom's manager wants to find out why Custom is not profitable. He has prepared the following repor

1. Jepsen Corp had the following transactions relating to shares of stock: • Issued 1,000 shares • Purchased 100 shares • Re-issued 50 shares • Declared and distributed a 2-1 stock

Calculate the DuPont Model, given the following information: cash=$16,080; accounts receivable= $9,500; prepaid = $3,150; supplies =$675; equipment =$25,200; accumulated depreciati

You have observed the following returns over time: Year Stock X Stock Y Market 2006 13% 13%

BALANCE SHEET Grouping of items:   Items in the Balance Sheet should be grouped under appropriate headings. In particular, a trust operating the provisions of the Trustee Act

Washington-Pacific invests $2 million to take a tract of land and plant some young pine trees. The trees can be harvested in 13 years, at which time W-P plans to sell the forest at

MarmadukeMuffett once had a girlfriend who ran an antiques business in London'sKings Road. Ever since then, he has been hooked on the furniture trade and now runsMarmaduke'sMarvell

XYZ Inc. whose stock is currently valued at $125/share with an implied volatility of 40% has debt of $80/share. a. Assuming a global recovery rate of 50% and a standard deviatio