§ 28A-15-5. Order in which assets appropriated; abatement. - North Carolina Statutes

§28A‑15‑5.  Order in which assets appropriated; abatement.

(a)        General Rules. – Inthe absence of testamentary indication as to the order of abatement, or someother controlling statute, shares of devisees and of heirs abate, without anypreference or priority as between real and personal property, in the followingorder:

(1)        Property notdisposed of by the will;

(2)        Residuary devises;

(3)        General devises;

(4)        Specific devises.

For purposes of abatement, ademonstrative devise of money or property payable out of or charged on aparticular fund or other property is treated as a specific devise; but if theparticular fund or property out of which the demonstrative devise is to be paidis nonexistent or  insufficient at the death of the testator, the deficiency isto be payable out of the general estate of the decedent and is to be regardedas a general devise and must abate pro rata with other general devises.Abatement within each classification is in proportion to the amounts ofproperty each of the beneficiaries would have received, had full distributionof the property been made in accordance with the terms of the will.

(b)        Abatement; Sales;Contribution. – When property which has been specifically devised is sold,leased, or mortgaged, or a security therein is created, by the personalrepresentative, abatement shall be achieved by ratable adjustments in, orcontributions from other interest in the remaining assets. The clerk ofsuperior court shall, at the time of the hearing on the petition for final distribution,determine the amounts of the respective contributions and whether the sameshall be made before distribution or shall constitute a lien on specificproperty which is distributed. (1973, c. 1329, s. 3.)