multiple beneficiaries in my will (math question)

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spartanap
Posts: 41
Joined: Sun May 25, 2014 9:16 pm

multiple beneficiaries in my will (math question)

Post by spartanap »

I have multiple beneficiaries in my will. In the event that one beneficiary dies before I do the will is set up so that their share is to be distributed proportionally to the remaining beneficiaries. I'm struggling with the math. Here's an example:

Beneficiary 1 - 5%
Beneficiary 2 - 5%
Beneficiary 3 - 5%
Beneficiary 4 - 5%
Beneficiary 5 - 10%
Beneficiary 6 - 10%
Beneficiary 7 - 10%
Beneficiary 8 - 15%
Beneficiary 9 - 15%
Beneficiary 10 - 20%

Let's say Beneficiary 5 dies before I do. How would their 10% be divided up among the remaining nine?
mcraepat9
Posts: 1619
Joined: Thu Jul 16, 2015 11:46 am

Re: multiple beneficiaries in my will (math question)

Post by mcraepat9 »

If a beneficiary dies just take the other percentages and instead of dividing by 100 divide by 100 minus whatever that pre-deceased beneficiary had.

So if a 10% beneficiary dies before you, everyone’s number should instead be divided by 90. 5/90, 10/90 etc..

Numerator stays the same, denominator goes down.
Amateur investors are not cool-headed logicians.
Topic Author
spartanap
Posts: 41
Joined: Sun May 25, 2014 9:16 pm

Re: multiple beneficiaries in my will (math question)

Post by spartanap »

Thanks. I think I was absent from math class the day we learned that. ;-)
Spirit Rider
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Joined: Fri Mar 02, 2007 2:39 pm

Re: multiple beneficiaries in my will (math question)

Post by Spirit Rider »

The previous answer is incomplete. It depends on whether any of the beneficiary designations are "per stripes". If they are, that share goes to their heirs.
mcraepat9
Posts: 1619
Joined: Thu Jul 16, 2015 11:46 am

Re: multiple beneficiaries in my will (math question)

Post by mcraepat9 »

Spirit Rider is correct - my response was not a legal response, just an arithmetic response that assumes your characterization of the reallocation is correct - 10 essentially unrelated beneficiaries. If your will does have per stirpes provisions, then you’d need a proper beneficiary chart (with descendants shown) to do the math.
Amateur investors are not cool-headed logicians.
Topic Author
spartanap
Posts: 41
Joined: Sun May 25, 2014 9:16 pm

Re: multiple beneficiaries in my will (math question)

Post by spartanap »

None are per stirpes.
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