Trust & estate distribution
Reduces the recognized value of an estate or trust to the net distributable amount, divides it among the beneficiaries, and equalizes each share for prior distributions, assets taken in kind, debts owed to the estate and debt forgiven. The schedule closes with a reconciliation that must foot.
Matter
Recognized value
The assets the estate or trust holds according to bank statements, appraisals and other records. List each asset at its confirmed value. The total is the recognized value before any reduction.
Reductions to distributable
The amounts deducted before anything is divided: a cash reserve held back for contingencies, debts and taxes, administration and professional fees, and any specific or pecuniary gifts paid ahead of the residue.
Beneficiaries and shares
Each residuary beneficiary and the beneficiary’s share of the distributable amount, entered as a percentage (shares should total 100%). Then record what each has already received or owes, so that the residual brings every beneficiary to the same proportion.
Treatment of prior distributions
A prior distribution may be treated in one of two ways.
| Beneficiary | Share | Target share | Prior (advance) | In kind | Debt setoff | Forgiven | Other ± | Residual to distribute |
|---|
What this tool does, and what it leaves to counsel
The tool performs the residuary waterfall and the equalization arithmetic: recognized value down to net distributable, proportional shares, the hotchpot add-back, and charges for prior distributions, in-kind assets, debt setoffs and forgiven debt, with a reconciliation that must foot.
The following are deliberately left to counsel. Enter the results as line items above, or address them outside the tool:
- Defining the shares themselves: per stirpes or per capita distribution, lapse and anti-lapse, ademption, disclaimers, pretermitted heirs, and spousal elective or statutory shares.
- Estate and GST tax apportionment, and the gain triggered by funding a pecuniary gift with appreciated property.
- Marital and credit-shelter formula funding, and “fairly representative” asset spreading.
- Income and principal allocation between life tenant and remainder, and statutory interest on late legacies.
- Whether a beneficiary’s debt to the estate or a forgiven note was already included in recognized value.
Before you rely on this statement
- This statement is a calculation aid and is not legal, financial or accounting advice. The tool does not state the law.
- Every value, share and adjustment is supplied by counsel and must be confirmed against the governing instrument and controlling authority.
- Confirm whether a beneficiary’s debt to the estate or a forgiven note was already included in recognized value; otherwise the reconciliation can foot while still being wrong on the facts.
Confirm each value, share and adjustment against the governing instrument and controlling authority before distributing.
Prepared with JuraSumLegal Math · jurasum.com
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