KNASTER INHERITANCE PROCEDURE

The Knaster Inheritance Procedure(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 and 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 has to give it to the

pot(kitty).6. Out of kitty you pay the remaining fair shares to

others.7. What is left is surplus and will be divided

equally.8. List final division.

Example

What do we do if 4 heirs have to divide an estate

 consisting of, say, a house (as before), a cabin,

and a boat? The easiest answer is to handle one estate one 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 20,000

Example 2

Describe a fair division for three children E, F, G, who inherit equal share of their parents’ Classic car collection and who submit sealed bids (in Dollars) on these five cars as follows:E F G

Duesenburg 18,000 15,000 15,000

Bentley 18,000 24,000 20,000Ferrari 16,000 12,000 16,500Pierce - Arrow 14,000 15,000 13,500

Cord 24,000 18,000 22,000