(a) All of the property of a decedent, and any income therefrom in the course of estate administration, is chargeable with the payment of:

(1) Administration and reasonable funeral expenses, debts of the decedent and any taxes for which the estate is liable.

(2) Unless such property is specifically disposed of, any general dispositions.

(b) In applying such property to the payment of any item specified in paragraph (a), no distinction shall be made between real and personal property.

(c) Whenever such property is insufficient to satisfy both the estate obligations described in subparagraph (a) (1) and all dispositions under the will, interests in the decedent's estate abate, for the purpose of paying such estate obligations, in the following order:

(1) Distributive shares in property not disposed of by will.

(2) Residuary dispositions.

(3) General dispositions. Demonstrative dispositions shall be treated as general dispositions to the extent that the property or fund charged with a demonstrative disposition has adeemed.

(4) Specific dispositions, and any income derived therefrom, ratably, in accordance with the value of the respective interests of the beneficiaries of such dispositions. For the purposes of this section, a demonstrative disposition shall be treated as a specific disposition if the property or fund charged with any demonstrative disposition has not adeemed, to the extent of the value of such property or fund.

(5) Any disposition to a surviving spouse which qualifies for the estate tax marital deduction.

(d) The order of abatement provided in paragraph (c) shall not apply to the payment of an estate or other death tax, under the law of this state or of any other jurisdiction, with respect to any property required to be included in the gross tax estate of a decedent under the provisions of any such law. The apportionment of such estate or other death tax, and the abatement of interests in the decedent's estate consequent to such apportionment, are governed by the provisions of 2-1.8.

(e) Whenever the provisions of this section are inconsistent with the express or implied intention of the testator to distinguish real property from personal property or to prefer certain beneficiaries under his will to others, the property of the estate shall be applied and the interests of beneficiaries under the will shall abate in such manner as is necessary to give effect to the intention of the testator.

(f) In the event that any property of the estate is applied to the payment of estate obligations in contravention of the order of abatement prescribed by this section, beneficiaries whose rights have been so impaired are entitled to be indemnified by other beneficiaries or distributees, as the case may be, so as to accomplish an abatement in accordance with the provisions of this section, and the amount of such indemnity shall constitute a charge on the interests of the beneficiaries or distributees liable therefor. Nothing in this paragraph shall relieve the personal representative of his liability to beneficiaries whose rights have been so impaired.