Section 13-1.3. Assets chargeable with payment of estate obligations; order in  


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  • which assets appropriated; abatement
        (a) All of the property of a decedent, and any income therefrom in the
      course of estate administration, is chargeable with the payment of:
        (1) Administration and  reasonable  funeral  expenses,  debts  of  the
      decedent and any taxes for which the estate is liable.
        (2)  Unless  such  property  is  specifically disposed of, any general
      dispositions.
        (b) In applying such property to the payment of any item specified  in
      paragraph  (a),  no  distinction shall be made between real and personal
      property.
        (c) Whenever such property is insufficient to satisfy both the  estate
      obligations described in subparagraph (a) (1) and all dispositions under
      the  will,  interests in the decedent's estate abate, for the purpose of
      paying such estate obligations, in the following order:
        (1) Distributive shares in property not disposed of by will.
        (2) Residuary dispositions.
        (3) General dispositions. Demonstrative dispositions shall be  treated
      as  general dispositions to the extent that the property or fund charged
      with a demonstrative disposition has adeemed.
        (4) Specific dispositions, and any income derived therefrom,  ratably,
      in  accordance  with  the  value  of  the  respective  interests  of the
      beneficiaries of such dispositions. For the purposes of this section,  a
      demonstrative  disposition shall be treated as a specific disposition if
      the property or fund charged with any demonstrative disposition has  not
      adeemed, to the extent of the value of such property or fund.
        (5)  Any  disposition  to  a  surviving spouse which qualifies for the
      estate tax marital deduction.
        (d) The order of abatement provided in paragraph (c) shall  not  apply
      to  the  payment  of an estate or other death tax, under the law of this
      state or of  any  other  jurisdiction,  with  respect  to  any  property
      required  to be included in the gross tax estate of a decedent under the
      provisions of any such law. The apportionment of such  estate  or  other
      death  tax,  and  the  abatement  of  interests in the decedent's estate
      consequent to such apportionment, are  governed  by  the  provisions  of
      2-1.8.
        (e)  Whenever the provisions of this section are inconsistent with the
      express or  implied  intention  of  the  testator  to  distinguish  real
      property from personal property or to prefer certain beneficiaries under
      his  will to others, the property of the estate shall be applied and the
      interests of beneficiaries under the will shall abate in such manner  as
      is necessary to give effect to the intention of the testator.
        (f)  In  the  event  that any property of the estate is applied to the
      payment of estate obligations in contravention of the order of abatement
      prescribed by this section, beneficiaries  whose  rights  have  been  so
      impaired  are  entitled  to  be  indemnified  by  other beneficiaries or
      distributees, as the case may be, so as to accomplish  an  abatement  in
      accordance  with  the provisions of this section, and the amount of such
      indemnity  shall  constitute  a  charge  on   the   interests   of   the
      beneficiaries or distributees liable therefor. Nothing in this paragraph
      shall   relieve   the   personal  representative  of  his  liability  to
      beneficiaries whose rights have been so impaired.