ahtohallan
Keen member
Hi there
Under the Fairness of Distribution section, the first point explains how cost of guarantee or cost of smoothing that are charged to the asset share make a contribution to the estate.
In working through the earlier asset shares chapter, I had not thought about where these "costs" go to once deducted from the asset share. Please could you also help point me any reading (if any) that refer to this process of contributions to the estate.
Why does it get paid into the estate? Is this because the estate is meant to cover any shortfall between asset share and the payout due? If so, conceptually how does the excess/ shortfall paid relate to the cost of guarantee or smoothing if its deducted from asset share but paid out of estate anyway if the asset share is too low.
Many thanks
Under the Fairness of Distribution section, the first point explains how cost of guarantee or cost of smoothing that are charged to the asset share make a contribution to the estate.
In working through the earlier asset shares chapter, I had not thought about where these "costs" go to once deducted from the asset share. Please could you also help point me any reading (if any) that refer to this process of contributions to the estate.
Why does it get paid into the estate? Is this because the estate is meant to cover any shortfall between asset share and the payout due? If so, conceptually how does the excess/ shortfall paid relate to the cost of guarantee or smoothing if its deducted from asset share but paid out of estate anyway if the asset share is too low.
Many thanks