KNASTER INHERITANCE PROCEDURE (SOL: DM.7) Classwork (day 24): Quiz Homework (day 24): Worksheet (day 24) Begin 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 1.Determine Fair Share 2.Add up bids & divide by number of people 3.Circle who bids highest on each item. 4.Subtract their amount from fair share. 5.People with excessive gains have to give it to the pot (kitty) 6.Out of the kitty, you play the remaining fair shares to others. 7.What is left is the surplus and will be divided equally. 8.List final division.

Knaster Inheritance Procedure 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: BOBCORALTEDALICE House120,000200,000140,000180,000 Cabin60,00040,00090,00050,000 Boat30,00024,00020,000

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. ElijahFrankieGoofy Duesenburg18,00015,000 Bentley18,00024,00020,000 Ferrari16,00012,00016,500 Pierce- Arrow14,00015,00013,500 Cord24,00018,00022,000