Inheritance Equity Analysis

Prepared for Trustee | Demo Abbreviation

Purpose

This note reduces the inheritance logic to equations rather than household-specific payout tables.

Core Variables

• Estate = net estate after tax
• Equity = documented equity claim contributed by the support household
• SNTvalue = value already held for the dependent household through the SNT
• Remainder = estate remainder available for equalization after prior claims
• Target = equal target share of Person A's wealth

Equalization Model

1. Remainder = Estate - Equity
2. Target = Remainder / 3
3. Dependent household top-up = max(Target - SNTvalue, 0)
4. Support household total receipt = Target + Equity
5. Trustee household total receipt = Target

Interpretation

• The equity claim Equity is treated as return of separate contributed capital, not as inheritance.
• The SNT value SNTvalue counts toward the dependent household's share of Person A's wealth.
• Equal inheritance means each branch receives the same amount of Person A's wealth, while contributed outside capital is returned separately.

Sensitivity Framing

• If Estate grows, all equalized shares rise.
• If SNTvalue grows, the dependent-household top-up falls.
• If Equity is documented clearly, settlement arithmetic becomes mechanical instead of discretionary.

Demo Takeaway

For demo purposes, the important point is not any single table of values. It is the structure:

estate after tax -> repay outside capital -> equalize remaining family wealth