How do you calculate on pro rata basis? - Answers

For example: If a person's estate is distributed on a pro rata basis, each claimant in the estate is entitled to that portion of the estate based on the amount of his/her claim. Let's say the estate is currently worth $10,000. You have a claim against the estate for $20,000, and your sister has a claim against the estate for $2,000. There is not enough money to pay either one of you in full. This is where pro rata takes place. You compare your claim to the size of the other claim. Your claim is ten times what your sister's claim is. You will receive ten times whatever she gets, up to the amount that is in the estate. Since the estate is only $10k, you have to divide it by 11 (your share of 10 to her share of 1) 10:1. For every one dollar she gets, you get ten. So the mathematical equation: 10,000/11=909 Each part is worth $909. She only gets one part. You get ten. You will receive $9,090 and your sister will get $909. Just to be fair....I would split the last dollar with her so you each get .50 more.