Knaster inheritance procedure (SOL: DM.7) Classwork (day 26): Quiz Homework (day 26): Worksheet (day 26) Mathxl online study guide for chapter 3!

The Knaster Inheritance Procedure is used for more than two heirs. (Note: Heirs must have large amounts of cash at their disposal) Steps to Knaster Determine Fair Share Add up bids & divide by number of people Circle who bids highest on each item. Subtract their amount from fair share. People with excessive gains have to give it to the pot (kitty) Out of the kitty, you play the remaining fair shares to others. What is left is the surplus and will be divided equally. List final division.

Knaster Inheritance Procedure https://www.youtube.com/watch?v=03Qbxi1Mw7M

Ex: What do we do if four heirs have to divide an estate consisting of a house, a cabin and a boat? The easiest answer is to handle one estate object at a time. The heirs submit the following bids: BOB CORAL TED ALICE House 120,000 200,000 140,000 180,000 Cabin 60,000 40,000 90,000 50,000 Boat 30,000 24,000 20,000

Ex: Describe a fair division for three children Elijah, Frankie and Goofy who inherit equal share of their parents’ Classic Car Collection and who submit sealed bids (in Dollars) on these five cars. Elijah Frankie Goofy Duesenburg 18,000 15,000 Bentley 24,000 20,000 Ferrari 16,000 12,000 16,500 Pierce- Arrow 14,000 13,500 Cord 22,000