HSB 21

The bill provides that, in lieu of this procedure, a certification of trust may be dated and certified under penalty of perjury. Under current law, abatement occurs when the equitable assets of a deceased person are not sufficient to satisfy debts, creditors, or taxes.4703 provides a default order of abatement if the governing instrument is silent. Currently, shares allocated to residuary beneficiaries are abated first on a pro rata basis, followed by shares defined by dollar amount on a pro rata basis, and lastly the shares described as specific items of property are abated by the trustee among the beneficiaries as equitably as circumstances reasonably allow. A disposition in favor of a surviving spouse who has not taken an elective share is not abated when the abatement would result in increasing the amount of federal taxes payable by a person or entity. The bill provides that a disposition in favor of the surviving spouse who did not take an elective share is abated last, notwithstanding the current order of abatement which remains the same, and strikes the prohibition on such abatements which have the effect of increasing the amount of federal taxes payable by a person or entity.