How is my inheritance divided properly

ginnymac3

New member
Joined
Jul 22, 2017
Messages
3
Not sure how much inheritance there will be, so i will just use $10k as an example

my father has $10,000 to be divided equally between 5 children, but one of the children owes him $1,000.

How does the money get divided?

This is how i figured it..........

$10,000 divided by 5 = $2,000 to each child

after receiving the $2,000 inheritance, the child owing the $1,000 puts the money he owes back into the pot and then it gets split between the 5 children. Therefore 4 of the children would receive $2,200 and the 5th child that owed the $1,000 receives $1,200

my father said that the 5th child should only get $1,000 and the other 4 should get $2,250. That doesn't seem correct. Can anyone out there help me out here? Thanks.
 
Try repaying the loan, first. This increases the value of the estate and the 5-way division is obvious.

Start
Dad $10,000
Debtor: 1000
K2: 0
K3: 0
K4: 0
K5: 0

Repayment
Dad $11,000
Debtor: 0
K2: 0
K3: 0
K4: 0
K5: 0

Division
Dad 0
Debtor: 2200
K2: 2200
K3: 2200
K4: 2200
K5: 2200

All told
Dad -10,000
Debtor: +2200-1000 = 1200
K2: +2200
K3: +2200
K4: +2200
K5: +2200
 
Top