A $100,000 trust fund must be divided between 5 beneficiaries in equal shares.

Question

One beneficiary borrowed $20,000 from the trust account. Another beneficiary borrowed $13,000 from same trust account Another beneficiary borrowed $8,000 from the same trust account. The other 2 beneficiaries did not borrow any funds from the family trust account. The funds the 3 beneficiaries that borrowed from the trust account will be subtracted from their equal share once the trust fund is distributed. How much inheritance from the $100,000 trust fund will each beneficiary receive upon distribution ?

Answer 1

The trust fund now has

100,000 - 41,000 = $59,000

 

Originally each would get 100,000/5 = $20,000.

Take away any amounts borrowed individually.

 

b₁ = 20,000 - 20,000 = $0

b₂ = 20,000 - 13,000 = $7,000

b₃ = 20,000 - 8,000 = $12,000

b₄ & b₅ each still get $20,000