1. Knaster inheritance procedure (SOL: DM.7)
Classwork (day 26):
Quiz
Homework (day 26):
Worksheet (day 26)
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2. 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.

3. Knaster Inheritance Procedure

4. 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

5. 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