What does Abatement refer to in terms of estate law?

Abatement in estate law specifically refers to the situation where an estate does not have sufficient funds to pay all gifts to beneficiaries after settling debts and expenses. When the total value of bequests exceeds the available assets of the estate, some gifts must be reduced or eliminated in order to ensure that creditors are paid first and that the estate remains solvent. This can occur in cases where the debts or claims against the estate are substantial enough to exceed the asset value, leading to a scenario where beneficiaries receive less than what was originally intended by the decedent’s will.

Understanding abatement is critical, as it directly impacts how gifts are distributed among beneficiaries and the overall administration of the estate. It highlights the importance of proper estate planning to ensure that sufficient assets are available to honor the decedent's wishes without compromising the ability to meet financial obligations.