In T's will leaves $100,000 to X, $100,000 to Y, and $800,000 to Z. The residuary estate goes to X. The probate assets total $800,000. How are the bequests satisfied?

• A. X 800k, Y 0, Z 0
• B. X 80k, Y 80k, Z 640k
• C. X 100k, Y 100k, Z 600k
• D. X 0, Y 0, Z 800k

Answer: (B)

When there aren’t enough assets to satisfy all gifts in a will, the gifts are abated proportionally to fit the available assets. Here, the probate assets total 800,000, while the will promises 100,000 to X, 100,000 to Y, 800,000 to Z, and a residuary to X. The fixed bequests add up to 1,000,000, which exceeds the 800,000 available. The reduction factor is 800,000 / 1,000,000 = 0.8. Apply that to each gift: X’s 100,000 becomes 80,000; Y’s 100,000 becomes 80,000; Z’s 800,000 becomes 640,000. The residuary share is also subject to abatement, so there is nothing left for X from the residuary. The final distribution is X 80,000, Y 80,000, Z 640,000, with no residuary amount remaining.