Whats the Difference Between Per Stirpes and Per Capita Distributions?
When it comes to estate planning terms, two that you’ll need to be familiar with are “per stirpes” and “per capita.” These are Latin terms that are commonly used in Last Will and Testaments and Revocable Living Trusts to describe how your property is to be left to your beneficiaries. Per Stirpes “Per stirpes” means taking “by representation” or “by class.” In the estate planning context, this means that if the beneficiaries are to share in a distribution “per stirpes,” then the living member in the class of beneficiaries who is closest in relationship to the person making the distribution will receive an equal share. However, if a member in the class of beneficiaries who is closest in relationship to the person making the distribution is deceased and survived by any descendants, then that deceased beneficiary’s descendants will take “by representation” what their deceased parent would have taken. The easiest way to explain the concept is by a few examples. Let’s assume the following: •
