Pecuniary Formula Law and Legal Definition
Pecuniary formula is a method for dividing a marital deduction from other distributions by way of a specific dollar amount. The formula provides overall appreciation or depreciation of estate after death and before distribution passes to the non-marital share. Pecuniary formula:
guarantees a specific sum to the marital share;
allows the personal representative to select assets with which to fund the marital share; and
requires revaluation of assets;
The two distinct varieties of pecuniary formulas are the Pecuniary Credit Shelter Formula and the Pecuniary Marital Deduction Formula. In the Pecuniary Credit Shelter Formula, the marital deduction division involves funding a bypass trust with a specific dollar amount and funding the residuary estate with an amount equal to the claimed marital deduction. The Pecuniary Marital Deduction Formula involves funding the marital bequest with a specific dollar amount and funding the bypass trust with the remainder of the estate.
