Check me on my thinking here. The Heavenly Inheritance given to us comes from Christ’s Pure Sacrifice and Redemption (along with the sacrifices of members of the Body of Christ led first by our Lady). This is not earned.
Merit however is earned (by something as simple as a cup of water to a child or something far more heroic like a living martyrdom) by our acts of love and how we deliver that love (example: giving kindly, patiently) and our acts to avoid temptation (lust, anger, coveting, addictions, etc).
In Heaven, then, I’m guessing we will somehow display our merits whether that be on some type of spiritual clothing or in our hearts or in the mansions being prepared.
Do I understand the differentiation here correctly?