Assets and Obligations at Time of Death

Each party who is the prospective beneficiary in a contract with an individual (in this section, this individual is identified as the ``decedent'') is entitled to recompensation if that individual dies or becomes by injury permanently incapable of performing in accordance with the terms of the contract.

Recompensation can be by delivery of the current MMSE, or through any settlement method specified in the contract.   When a settlement method other than the MMSE is available, the beneficiary must accept it and cannot demand an MMSE settlement.   The party currently in custody of an item, the delivery of which constitutes full settlement of a contract, can at his discretion settle the contract with an MMSE, which the beneficiary must accept as full settlement.

Any party who is the beneficiary in a contract with the decedent, and who is also party to a contract in which the decedent is the beneficiary, must assign the MMSE's of those contracts in which the decedent is the beneficiary to the settlement of those contracts in which the decedent is not the beneficiary, provided that any settlement agreement reached by the beneficiary and the estate of the decedent takes precedence.

When no specified settlement method is feasible other than delivery of the MMSE, settlement must be accepted in the form of (1) monetary metals or contractual currency at market rates, or (2) designation of the beneficiary as the beneficiary of a pre-existing contract between the decedent and another party in which the decedent was the beneficiary, or (3) reassignment of the material or land assets of the decedent at fair market value, or (4) through designation of the beneficiary as the beneficiary of a pre-existing contract between two parties in which the beneficiary party became party to the contract as the result of a gift by the decedent, or (5) through reassignment to the recipient of a gift or gifts given by the decedent, of a contractual obligation of the decedent, only if the recipient received the gift or gifts after this contractual obligation was originally incurred, and only if the MMSE of the reassigned obligation is equal to or less than the market value of the gift or gifts.

When multiple beneficiaries seek recompensation, settlement must give priority to a contract signed at an earlier time.   Settlement of a more recently signed contract cannot commence until all earlier contracts have been settled.

Recompensation must proceed first through untransferred assets (assets held by the debtor at the time of his death) and then through transferred assets (assets transferred by the debtor to others before his death).   Within a class of assets (transferred or untransferred), recompensation must first proceed through monetary and other fungible assets, thence to assets without sentimental value, thence to reassignment of contractual beneficence, and finally to assets with sentimental value.   Only after all of these avenues of recompensation have been exhausted can there be a reassignment of contractual obligation.   The declaration of sentimental value is performed by the prospective inheritors or recipients on the bases of their choice. The inheritors or recipients can, at any time, volunteer currency equal to the fair market value of an item, which the beneficiary of an obligation must accept in lieu of the non-fungible asset.

Obligations which cannot thereby be settled or reassigned are nullified.

In the presence of a will, those assets which remain after settlement of obligations are assigned according to the will, with the designated beneficiaries exercising discretion (before settlement begins) regarding preferred form of obligation settlement as though it had already been transferred as a gift.   In the absence of a will, remaining assets are assigned wholly to the partner, or in the absence of a partner, divided evenly among the genetically closest tier of relatives giving preference to the younger and closer tiers.

previous section "On Bankruptcy"

next section "On Money"

back to index for this chapter ("Finance")

back to top-level index

Send email to me at

Site Search

This is a preliminary draft. Pending changes are in The To-Do List