N.Y. EPT Law § 13-1.3

§ 13-1.3 Assets chargeable with payment of estate obligations; order in\n which assets appropriated; abatement\n (a) All of the property of a decedent, and any income therefrom in the\ncourse of estate administration, is chargeable with the payment of:\n (1) Administration and reasonable funeral expenses, debts of the\ndecedent and any taxes for which the estate is liable.\n (2) Unless such property is specifically disposed of, any general\ndispositions.\n (b) In applying such property to the payment of any item specified in\nparagraph (a), no distinction shall be made between real and personal\nproperty.\n (c) Whenever such property is insufficient to satisfy both the estate\nobligations described in subparagraph (a) (1) and all dispositions under\nthe will, interests in the decedent's estate abate, for the purpose of\npaying such estate obligations, in the following order:\n (1) Distributive shares in property not disposed of by will.\n (2) Residuary dispositions.\n (3) General dispositions. Demonstrative dispositions shall be treated\nas general dispositions to the extent that the property or fund charged\nwith a demonstrative disposition has adeemed.\n (4) Specific dispositions, and any income derived therefrom, ratably,\nin accordance with the value of the respective interests of the\nbeneficiaries of such dispositions. For the purposes of this section, a\ndemonstrative disposition shall be treated as a specific disposition if\nthe property or fund charged with any demonstrative disposition has not\nadeemed, to the extent of the value of such property or fund.\n (5) Any disposition to a surviving spouse which qualifies for the\nestate tax marital deduction.\n (d) The order of abatement provided in paragraph (c) shall not apply\nto the payment of 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 abatement of interests in the decedent's estate\nconsequent to such apportionment, are governed by the provisions of\n2-1.8.\n (e) Whenever the provisions of this section are inconsistent with the\nexpress or implied intention of the testator to distinguish real\nproperty from personal property or to prefer certain beneficiaries under\nhis will to others, the property of the estate shall be applied and the\ninterests of beneficiaries under the will shall abate in such manner as\nis necessary to give effect to the intention of the testator.\n (f) In the event that any property of the estate is applied to the\npayment of estate obligations in contravention of the order of abatement\nprescribed by this section, beneficiaries whose rights have been so\nimpaired are entitled to be indemnified by other beneficiaries or\ndistributees, as the case may be, so as to accomplish an abatement in\naccordance with the provisions of this section, and the amount of such\nindemnity shall constitute a charge on the interests of the\nbeneficiaries or distributees liable therefor. Nothing in this paragraph\nshall relieve the personal representative of his liability to\nbeneficiaries whose rights have been so impaired.\n