Abatement: Estate valued at date of distribution rather than date of death

In the case of In re Estate of Goldman, 158 P.3d 892 (Ariz. Ct. App. 2007), the decedent’s will made general bequests of cash to individuals and to charities and directed that the individuals be paid before the charities.

On the date of the decedent’s death, estate assets were insufficient to pay all the general bequests, but the estate assets appreciated greatly during the course of administration.

In an action by one of the charitable beneficiaries to compel payment of its bequest, the court held as a matter of first impression that for purposes of abatement, an estate is to be valued at the time of distribution.