1. Knaster Inheritance Procedure

2. The Knaster Inheritance Procedure(used for more than two heirs)
Note: Heirs must have large amounts of cash at their disposal.

3. Steps to Knaster Determine fair share.
Add up bids and divide by number of people.
Circle who bids highest on each item.
Subtract their amount from fair share.
People with excessive gains has to give it to the pot(kitty).
Out of kitty you pay the remaining fair shares to others.
What is left is surplus and will be divided equally.
List final division.

4. 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

5. 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
Bentley
24,000
20,000
Ferrari
16,000
12,000
16,500
Pierce - Arrow
14,000
13,500
Cord
22,000