Legal Question in Wills and Trusts in New York
Final Distribution of bequests when there are insufficient funds.
In NY state is there a requirement that general bequests be apportioned if there are insufficient funds to pay all legatees? Does a ''relative'' of the deceased have priority vis-a-vis a person who is a non-relative? Does an charitable organization have less standing for a bequest than would a relative or non-relative individual.
Can you quote a law or procedure that specifies the answer to this question.
My daughter a legatee was listed at the end of her uncle's will and was lost any interitance because the executor paid the full amounts to the legatees at the top of the will - he did not prorate the monies in the will to each of the legatees.
I found a reference to this situation in a book detailing California's handling of the situation. There, she would have received a prorated share of the estate.
1 Answer from Attorneys
Re: Final Distribution of bequests when there are insufficient funds.
Without seeing the actual document or reading the language used, this is hard to answer. Generally, if there is no order of priority set forth in the document or language setting forth that one or more lagatees be paid first, or unless the language creates specific bequests first and residual bequests second (specific bequests get paid as a priority over residual bequests), if there are insufficient assets for each legatee named to receive all they are entitled to, the assets are distributed pro rata. The specific information is needed to properly reply, and I need to read the Will to determine what happens. You can call the Surrogate or check any NY law website to get the exact statutory language.
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