What the difference between per stirpes and per capita distributions?

Under per capita, the share of any beneficiary that precedes you in death is shared equally among the remaining beneficiaries. With per stirpes, if one child were to precede you in death, the other child would receive half, and the children of the deceased child would get the other half.

What is the difference between right of representation and per stirpes?

“Per stirpes”, “per capita”, and “by representation” are all legal jargon for different ways of distributing property to linear descendants. Linear descendants are children, grandchild, great-grandchildren of a person. Per stirpes means treating each side of the family equally.

What does per capita with representation mean?

Under the per capita with representation distribution, used by about ½ of the states, the estate is divided by the number of people in the highest tier where there is a live taker. The advantage of this distribution is that each live member of a given generation receives equal portions of the estate.

What is a per capita beneficiary designation?

Per Capita Beneficiary Designation Per capita is a Latin phrase that translates literally to “by head.” In a per capita distribution, each designated beneficiary receives an inheritance only if they are living when the inheritance vests. Usually, that means surviving the testator of the Will or grantor of the Trust.

Is per stirpes a good idea?

So, attorneys should use the term “per stirpes” only in the context of descendants and not go rogue by using “children, per stirpes” or “siblings, per stirpes.” Also, it is a good idea to use a proper definition of “per stirpes” because the term varies in different jurisdictions.

When a will calls for property to be distributed per stirpes It means that?

Per stirpes stipulates that a beneficiary’s heirs receive the inheritance should the beneficiary die before the testator. The term refers to every person down a branch of a family tree. Children may represent their parents if a parent passes before the decedent.

Does per stirpes mean equal?

An estate of a decedent is distributed per stirpes if each branch of the family is to receive an equal share of an estate. When the heir in the first generation of a branch predeceased the decedent, the share that would have been given to the heir would be distributed among the heir’s issue in equal shares.

How do you explain per stirpes to a client?

Per stirpes means that assets are divided equally by each branch of the family when there were surviving descendants in that branch. For example, let’s say Ann has three children: Adam, Barbara, and Chris. Ann decides to leave her estate “to her descendants, per stirpes.”

What is per stirpes and per capita?

Per stirpes in Latin means “by branch,” meaning, in this case, that a portion of the will must go to a person or that person’s heirs. Per capita means that any surviving descendants of the same generation distribute property equally.

What’s the difference between per capita and per stirpes?

Within a will or trust, that group can be your children, all your combined descendants, or named individuals. Under per capita, the share of any beneficiary that precedes you in death is shared equally among the remaining beneficiaries. Within a beneficiary designation, per capita typically means an equal distribution among your children.

What does it mean by per stirpes distribution?

The term per stirpes is Latin for “by representation” or “by class.” It means that each living beneficiary in a class of beneficiaries will receive an equal share. If a beneficiary is deceased and survived by any descendants, that beneficiary ’s descendants would take what their deceased parent would have taken “by representation.” 2 

How does per stirpes by representation work in New York?

Per stirpes by representation, also known as per capita by generation, is the default New York provision, which is in effect unless otherwise specified in a will or a trust. The predeceased beneficiaries’ shares at the same generation are divided equally between their children.

What is the difference between per capita and by representation?

Per Capita. “Per capita” means that the beneficiaries share the distribution of the gift based upon the number of beneficiaries which are living at the time of decedent’s death.