Legislation
SECTION 12-1.2
Order of liability; preferences
Estates, Powers & Trusts (EPT) CHAPTER 17-B, ARTICLE 12, PART 1
§ 12-1.2 Order of liability; preferences
(a) Distributees and testamentary beneficiaries are liable, as
provided in 12-1.1, in the following order:
(1) Distributees.
(2) Residuary beneficiaries.
(3) General beneficiaries. Demonstrative beneficiaries shall be
treated as general beneficiaries, to the extent that the property or
fund charged with a demonstrative disposition has adeemed.
(4) Specific beneficiaries. Demonstrative beneficiaries shall be
treated as specific beneficiaries 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) A surviving spouse to whom a disposition has been made which
qualifies for the estate tax marital deduction.
(b) The order of liability provided in paragraph (a) shall not apply
to the liability for 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 liability, under 12-1.1, of distributees and
testamentary beneficiaries consequent to such apportionment are governed
by the provisions of 2-1.8.
(c) The express or implied intention of the testator to prefer certain
beneficiaries shall be effective to vary the order of liability
prescribed by paragraph (a).
(d) If, in an action under this article, it is established to the
satisfaction of the court that:
(1) The defendant is liable for the payment of two or more claims,
preference in the payment of such claims must be given in the order
prescribed by law for payment of the debts of the decedent and the
obligations of his estate.
(2) An unsatisfied claim exists which is legally preferred to that of
the plaintiff, the existence of such unsatisfied claim is a defense to
the action if the aggregate value of the decedent's property passing to
defendant and other persons in his order of liability does not exceed
the amount of such unsatisfied claim; if in excess of the amount of such
unsatisfied claim, the plaintiff may recover such ratable share of the
excess as the amount of his claim bears to the claims of all persons in
the same order of preference as his.
(a) Distributees and testamentary beneficiaries are liable, as
provided in 12-1.1, in the following order:
(1) Distributees.
(2) Residuary beneficiaries.
(3) General beneficiaries. Demonstrative beneficiaries shall be
treated as general beneficiaries, to the extent that the property or
fund charged with a demonstrative disposition has adeemed.
(4) Specific beneficiaries. Demonstrative beneficiaries shall be
treated as specific beneficiaries 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) A surviving spouse to whom a disposition has been made which
qualifies for the estate tax marital deduction.
(b) The order of liability provided in paragraph (a) shall not apply
to the liability for 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 liability, under 12-1.1, of distributees and
testamentary beneficiaries consequent to such apportionment are governed
by the provisions of 2-1.8.
(c) The express or implied intention of the testator to prefer certain
beneficiaries shall be effective to vary the order of liability
prescribed by paragraph (a).
(d) If, in an action under this article, it is established to the
satisfaction of the court that:
(1) The defendant is liable for the payment of two or more claims,
preference in the payment of such claims must be given in the order
prescribed by law for payment of the debts of the decedent and the
obligations of his estate.
(2) An unsatisfied claim exists which is legally preferred to that of
the plaintiff, the existence of such unsatisfied claim is a defense to
the action if the aggregate value of the decedent's property passing to
defendant and other persons in his order of liability does not exceed
the amount of such unsatisfied claim; if in excess of the amount of such
unsatisfied claim, the plaintiff may recover such ratable share of the
excess as the amount of his claim bears to the claims of all persons in
the same order of preference as his.