Which property is paid first from an estate's assets when claims exceed gifts?

In the context of estate distribution when claims exceed gifts, intestate property is prioritized for payment. This is primarily because intestate property represents assets that do not have a designated beneficiary or specific instructions for distribution according to the decedent's intentions.

When the estate faces claims from creditors that exceed the value of specific bequests and general legacies, the law typically requires that these claims be satisfied from the available assets before any distributions to heirs can occur. Intestate property often forms the last reserve from which creditors can satisfy their claims since it does not have other stipulations governing its allocation. This highlights the principle that all debts and claims must be settled before any gifts, whether they are specific bequests, general legacies, or residuary assets, can be distributed.

The other types of property mentioned, such as specific bequests and general legacies, are obligations to distribute particular assets or amounts to named beneficiaries. If claims outweigh the total assets, these distributions may not even take place until the estate's debts are settled fully. Residuary assets, while also important, come into play only after specific and general gifts have been addressed; thus, they are not considered first for payment under conditions of insufficient assets.