In what situation might a gift in a will abate?

A gift in a will may abate when the estate lacks sufficient funds to cover all bequests and obligations. This situation often arises when the estate's liabilities, including debts, exceed the total value of its assets. In such cases, to ensure that the estate can meet its obligations, some gifts made in the will need to be reduced or eliminated, a process known as abatement.

According to the principles of probate and decedent's estates, abatement typically occurs in a specific order, with gifts being reduced starting from those that are non-essential or residual until the estate can satisfy its debts and administrative expenses. This ensures that the estate can be settled properly, with all creditors paid first, before distributing what remains to beneficiaries.

The other answer choices do not accurately illustrate situations that lead to abatement. For instance, if an estate has too many assets, the concern would not be about abatement but rather about how those assets are distributed among beneficiaries. A contested will does not cause gifts to abate; instead, it may delay the distribution process as legal disputes need resolution. Lastly, while debts can contribute to the necessity of abatement, it is specifically the lack of sufficient funds in the estate that directly prompts the need to reduce gifts.