dividing deceased estate

[Laura54]

Hi I am new to forum and as a beneficiary to some proceeds from an estate I have a dilemma. There are three beneficiaries (a) had already received $10,000. (b)already received $12,000 and (c) already received $18,000.
If the estate is $300,000 what would be the fairest formula to calculate what each person would receive. I have tried two methods that seem correct to me but get two different answers.
Thanks in advance for any input.
Laura

 

[Deleted member 4993]

Hi I am new to forum and as a beneficiary to some proceeds from an estate I have a dilemma. There are three beneficiaries (a) had already received $10,000. (b)already received $12,000 and (c) already received $18,000.
If the estate is $300,000 what would be the fairest formula to calculate what each person would receive. I have tried two methods that seem correct to me but get two different answers.
Thanks in advance for any input.
Laura

Please share your methods and answers with us.

 

[HallsofIvy]

Hi I am new to forum and as a beneficiary to some proceeds from an estate I have a dilemma. There are three beneficiaries (a) had already received $10,000. (b)already received $12,000 and (c) already received $18,000.
If the estate is $300,000 what would be the fairest formula to calculate what each person would receive. I have tried two methods that seem correct to me but get two different answers.
Thanks in advance for any input.
Laura

What do you mean when you say "fairest"? What, exactly does the will say? If, by "fairest", you mean that each person is to receive the same amount, total, then it is simply $300,000/3= $100,000. If you are concerned about "(a) had already received $10,000. (b)already received $12,000 and (c) already received $18,000" just subtract off what they have already received: (a) should get an additional $100,000- 10,000= $90,000, (b) an additional $100,000- 12,000= $88,000, and (c) and additional $100,000- 18,000= $82,000.

 

[Laura54]

What do you mean when you say "fairbeneficiaries, exactly does the will say? If, by "fairest", you mean that each person is to receive the same amount, total, then it is simply $300,000/3= $100,000. If you are concerned about "(a) had already received $10,000. (b)already received $12,000 and (c) already received $18,000" just subtract off what they have already received: (a) should get an additional $100,000- 10,000= $90,000, (b) an additional $100,000- 12,000= $88,000, and (c) and additional $100,000- 18,000= $82,000.

Thanks for reply HallsofIvy. The will states that the three beneficiaries receive equal thirds. However the three beneficiaries have signed IOU's years ago when they were advanced that money. It was the wishes of the deceased that the money already received is factored into what they will receive. Although that isn't in the will there is no dispute that was their wishes. Thank

 

[Laura54]

Please share your methods and answers with us.

One method I tried was taking the 8,000 and the 6,000 (difference between the $18,000 (c )has already got and what a and b already have) off the 300,000 which leaves 286,000 then equally split the 286,000 three ways. I then added the 8,000 to (a) share and 6,000 to (b) share. Does this make sense?

 

[Deleted member 4993]

Hi I am new to forum and as a beneficiary to some proceeds from an estate I have a dilemma. There are three beneficiaries (a) had already received $10,000. (b)already received $12,000 and (c) already received $18,000.
If the estate is $300,000 what would be the fairest formula to calculate what each person would receive. I have tried two methods that seem correct to me but get two different answers.
Thanks in advance for any input.
Laura

The actual worth of the estate = 300+10+12+18 = 340, 000

Each would get = 340/3 *1000

a would get now = (340/3 - 10)*1000 = 103,333.33

b would get now = (340/3 - 12)*1000 = 101,333.33

c would get now = (340/3 - 18)*1000 = 95,333.33
...................................................... __________

......................................................299,999.99
1 penny left to fight it out

 

[Laura54]

The actual worth of the estate =different0+12+18 = 340, 000

Each would get = 340/3 *1000

a would get now = (340/3 - 10)*1000 = 103,333.33

b would get now = (340/3 - 12)*1000 = 101,333.33

c would get now = (340/3 - 18)*1000 = 95,333.33
...................................................... __________

......................................................299,999.99
1 penny left to fight it out

Thanks for your reply. I get the same result with a slightly different formula. Problem solved.

 

[HallsofIvy]

Oh, I see. I was assuming that the money they "already had" was from the $300,000 dollars itself.