N.Y. EPT Law § 12-1.2

§ 12-1.2 Order of liability; preferences\n (a) Distributees and testamentary beneficiaries are liable, as\nprovided in 12-1.1, in the following order:\n (1) Distributees.\n (2) Residuary beneficiaries.\n (3) General beneficiaries. Demonstrative beneficiaries shall be\ntreated as general beneficiaries, to the extent that the property or\nfund charged with a demonstrative disposition has adeemed.\n (4) Specific beneficiaries. Demonstrative beneficiaries shall be\ntreated as specific beneficiaries if the property or fund charged with\nany demonstrative disposition has not adeemed, to the extent of the\nvalue of such property or fund.\n (5) A surviving spouse to whom a disposition has been made which\nqualifies for the estate tax marital deduction.\n (b) The order of liability provided in paragraph (a) shall not apply\nto the liability for an estate or other death tax, under the law of this\nstate or of any other jurisdiction, with respect to any property\nrequired to be included in the gross tax estate of a decedent under the\nprovisions of any such law. The apportionment of such estate or other\ndeath tax, and the liability, under 12-1.1, of distributees and\ntestamentary beneficiaries consequent to such apportionment are governed\nby the provisions of 2-1.8.\n (c) The express or implied intention of the testator to prefer certain\nbeneficiaries shall be effective to vary the order of liability\nprescribed by paragraph (a).\n (d) If, in an action under this article, it is established to the\nsatisfaction of the court that:\n (1) The defendant is liable for the payment of two or more claims,\npreference in the payment of such claims must be given in the order\nprescribed by law for payment of the debts of the decedent and the\nobligations of his estate.\n (2) An unsatisfied claim exists which is legally preferred to that of\nthe plaintiff, the existence of such unsatisfied claim is a defense to\nthe action if the aggregate value of the decedent's property passing to\ndefendant and other persons in his order of liability does not exceed\nthe amount of such unsatisfied claim; if in excess of the amount of such\nunsatisfied claim, the plaintiff may recover such ratable share of the\nexcess as the amount of his claim bears to the claims of all persons in\nthe same order of preference as his.\n