Accounting, Payroll & Pension Issues/How to fairly split inherited money
This is an accounting question. I'm horrible at math. My sister and I inherited 39,588.00 total together (It is in a checking account).
She has spent (or used) 6,150.00 already, I have spent (or used) 1679.00 already.
How do you figure out how much each will NOW receive?
(I don't think the lawyer is calculating it correctly.)
Okay I can do the calculations, however, you will have to figure any costs either of you paid to attorneys or CPA's for the administration of the estate funds as expenses to both of you and this should be deducted from the total before figureing the split of the funds.
So if you have 39,588.00 and attorney fees of 2000.00 you would only have 37,588 to split.
What you do is split the amount (less fees) in half.
So without any fees you would each have 39,588.00 divided by 2 is 19,794.00 each.
Now Any fees charged comes 1/2 off your share and 1/2 off her share so if 2000.00 is charge for fees than you would each have 18,794.00 as you each would pay 1/2 of the 2000.00 fee. If a different amount of fees than you each pay 1/2.
So you have to figure out how much of the money you have already spent and that your sister has spent is in fees. Those fees are divided by two and you each pay 1/2 of the fees.
If no fees are charged you take the 39,588.00 divide by two for a total of 19,794.00.
You would than take the amount you have already spent from that total to see what you have left.
19,794.00 - 6150.00 = 13,644.00 for your sister
19,794.00 - 1679.00 = 18, 115.00 for you
However remember if any of the 6150 or the 1679 is for fees pertaining to the admin of the account you both must split the fees or due accounts (bills) equally. That would change the amount you both are due.
For instance if your relative you inherited the money from left a hospital bill of 1000.00 and your sister paid it with part of the 6150 than you would have to deduct half of that or 500.00 from her 6150 and add it to your 1679 as you both have to pay expenses.
The same if you paid 500.00 to the lawyer for expenses pertaining to the inheritence than you would each owe 250.00 so 250.00 would come off your 1679 and 250 would add to her 6150 in order to equally share expenses.
What will happen is the lawyer or accountant will take their percentage out first of the money and you will split the difference between the two of you. Whatever is left after lawyer fees and expenses should be split in half than any personal amounts you have each spent is deducted from your half of the amount.
If you are still confused let me know and i will try to explain it better. It is not an easy process as there are variable which must be considered.