The Order of Abatement
Not every estate can cover everything a will promises. Debts, taxes, and administrative costs can shrink what is available. When that happens, Arizona law does not reduce every gift equally. Instead, it follows a fixed priority.
Shares of distributees abate, without any preference or priority as between real and personal property, in the following order: 1. Property not disposed of by the will. 2. Residuary devises. 3. General devises. 4. Specific devises.
A.R.S. § 14-3902(A)Property that was not addressed in the will gets used first. If that is not enough, the residuary estate (the "everything else" clause) absorbs the next round of reductions. General gifts of money come third. Specific items named in the will are the last to be touched. Within each category, reductions are proportional.
When the Testator Had a Different Plan
A will can override this default order. If the testator expressed a preference for how gifts should be reduced, or if following the default order would defeat the purpose of a particular bequest, the court may adjust accordingly.
If the will expresses an order of abatement, or if the testamentary plan or the express or implied purpose of the devise would be defeated by the order of abatement stated in subsection A, the shares of the distributees abate as may be found necessary to give effect to the intention of the testator.
A.R.S. § 14-3902(B)This statute also addresses how community and separate property interact during this process. Community debts are charged against community property. Separate debts are charged against separate property and the balance of the decedent's half of community property. Administrative expenses are shared proportionally between the two categories.