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Per Stirpes: Explained With Examples & Vs Per Capita

Last updated 03/19/2024 by

SuperMoney Team

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Summary:
Per stirpes is a Latin term used in estate planning to distribute assets to descendants of a deceased heir. This article will explain what per stirpes means, how it works in estate planning, and its advantages and disadvantages.

Overview

Estate planning is the process of managing an individual’s assets in the event of their death or incapacitation. One important aspect of estate planning is deciding how to distribute assets to beneficiaries. Per stirpes is a commonly used term in estate planning that can have significant implications on how assets are distributed to descendants.

What is per stirpes?

Per stirpes is a Latin term that translates to “by roots” or “by branch.” In estate planning, per stirpes is a method of distributing assets to the descendants of a deceased heir. Under this method, each branch of a family receives an equal share of an inheritance, regardless of the number of living members in each branch.

How does per stirpes work in estate planning?

Per stirpes is typically used when an heir predeceases the testator, or the person making the will. In this scenario, the assets that would have gone to the deceased heir are instead divided equally among their descendants. For example, if a testator leaves their assets equally to their three children, but one child has passed away, the assets that would have gone to the deceased child will be split equally among their children (the testator’s grandchildren).

Advantages of per stirpes

  • Per stirpes ensures that each branch of a family receives an equal share of an inheritance, regardless of the number of living members in each branch.
  • It can simplify the distribution process by ensuring that descendants of a deceased heir receive their rightful share without the need for additional legal steps.

Disadvantages of per stirpes

  • Per stirpes can lead to unequal distribution of assets among the testator’s descendants if one branch has more living members than another.
  • It can be difficult to determine which descendants qualify to receive a share of the inheritance under per stirpes, particularly if there are multiple branches in a family tree.
PRO TIP: Make sure you clearly outline your wishes in your estate plan and communicate them to your beneficiaries to avoid confusion or disputes after your passing.

Per stirpes vs. per capita:

Per stirpes is not the same as per capita, which is another way to distribute an estate’s assets. Per capita means that each person in a generation receives an equal share of the assets, regardless of whether they are the child of the deceased. For example, if the deceased had three children and one predeceased child with two living grandchildren, then the assets would be divided equally among the four living descendants.
Per stirpes, on the other hand, ensures that each branch of the family receives an equal share, even if some of the beneficiaries have passed away. It’s important to note that while per stirpes can be used to distribute assets to a deceased beneficiary’s descendants, per capita does not allow for this.

Special considerations

  • It’s important to consult with an experienced estate planning attorney to determine whether per stirpes is the best method for distributing your assets.
  • Per stirpes may not be the best option for blended families or families with complex relationships.
  • It’s essential to keep your estate planning documents up-to-date to ensure that your assets are distributed according to your wishes.

Examples

  • Testator A leaves their assets equally to their three children, but one child has passed away. The assets that would have gone to the deceased child are divided equally among their two children (the testator’s grandchildren) under per stirpes.
  • Testator B leaves their assets to their surviving spouse, but if the spouse predeceases them, the assets are divided equally among their children per stirpes.

Per stirpes FAQs

How does per stirpes differ from per capita?

Per capita distribution means each person in a group receives an equal share, regardless of their family relationship to the deceased. In contrast, per stirpes distribution means that the shares are divided equally among the children of the deceased, with the share of any deceased child being divided equally among their own children.

Can I choose not to use per stirpes?

Yes, you can opt not to use per stirpes and instead choose another distribution method, such as per capita or by representation.

What if I have no living descendants?

If you have no living descendants at the time of your death, your assets will be distributed according to the laws of intestacy in your state. In most cases, this means that your assets will go to your closest living relatives.

Can I change my distribution method later?

Yes, you can change your distribution method at any time by updating your will or trust. It’s important to review and update your estate plan regularly to ensure it reflects your current wishes and circumstances.

Can per stirpes be used in non-family situations?

Per stirpes is typically used in family situations where the goal is to distribute assets among multiple generations. However, it can also be used in other situations, such as distributing assets among business partners or members of a charitable organization.

Key takeaways

  • Per stirpes is a method of distributing assets in estate planning that divides shares equally among the children of the deceased, with the share of any deceased child being divided equally among their own children.
  • Per stirpes can help ensure that assets are distributed fairly among multiple generations of a family.
  • It’s important to review and update your estate plan regularly to ensure it reflects your current wishes and circumstances.
  • You can work with a qualified estate planning attorney to help determine the best distribution method for your individual needs.

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