Dividing Estate

[watts428]

I'm trying to figure out the correct way to divide an estate with cash and appraised jewelry. Say the estate has 100,000 cash. Say Beneficiary 1(B1) wants jewelry from the estate worth 10,000 and B2 wants jewelry worth 2,000 and B3 wants none of the jewelry. What is the proper way to calculate what each should recieve? Thanks!

 

[stapel]

I'm trying to figure out the correct way to divide an estate with cash and appraised jewelry. Say the estate has 100,000 cash. Say Beneficiary 1(B1) wants jewelry from the estate worth 10,000 and B2 wants jewelry worth 2,000 and B3 wants none of the jewelry. What is the proper way to calculate what each should recieve? Thanks!

What are the terms of the will? Are you supposed to assume that each of the parties is to receive an equal-valued share? What is the total value of the jewelry?

When you reply, please include a clear listing of your thoughts and efforts so far. Thank you!

 

[watts428]

What are the terms of the will? Are you supposed to assume that each of the parties is to receive an equal-valued share? What is the total value of the jewelry?

When you reply, please include a clear listing of your thoughts and efforts so far. Thank you!

The estate is to be divided evenly. The total of the jewelry is 12,000. Each person receiving jewelry wants it to come out of their share of the 100,000.

I believe this is correct:

112,000/3 - 10000 = 27333.33 for B1
112,000/3 - 2000 = 35333.3 for B2
112,000/3 -0 = 37333.33 for B3

Let me know your thoughts. Thanks!

 

[stapel]

The estate is to be divided evenly. The total of the jewelry is 12,000. Each person receiving jewelry wants it to come out of their share of the 100,000.

If the estate has $100,000 cash and $12,000 jewelry, then the entire value of the estate cannot be only $100,000. So either the jewelry is part of the $100,000, or else the value of the estate is (at least) $112,000.

Please reply with specifications regarding which. Thank you!

 

[watts428]

If the estate has $100,000 cash and $12,000 jewelry, then the entire value of the estate cannot be only $100,000. So either the jewelry is part of the $100,000, or else the value of the estate is (at least) $112,000.

Please reply with specifications regarding which. Thank you!

You are correct the total value of the estate would be 112,000 with the jewelry. The cash itself was $100,000. Thanks!

 

[watts428]

OK; so what's the problem?

B1 27,333.33 + 10,000
B2 35,333.33 + 2,000
B3 37,333.33
===============
T 100,000.00 + 12,000

The problem was figuring out the correct calculation for taking the value of the jewelry out of the $100,000 cash. It appears my calculations were correct. Thanks!