Under New York law, a specific gift of encumbered property is exonerated only if there is what?

• A. Exoneration occurs automatically.
• B. Exoneration occurs only with specific instruction in the will.
• C. Exoneration never occurs.
• D. Exoneration occurs if the decedent died before distribution.

Answer: (B)

In New York, a specific bequest of encumbered real estate is not automatically exonerated of its mortgage. Exoneration happens only when the will contains explicit language directing that the encumbrance be paid off out of the estate or that the property be delivered free of encumbrances. Absent that specific instruction, the gift passes subject to the lien—the beneficiary takes the property with the mortgage still attached. The executor can pay debts and expenses, but the presence or absence of exoneration depends on the will’s language. That’s why the correct understanding is that exoneration occurs only with specific instruction in the will.