Per Stirpes

Per stirpes is a Latin term that means "by the roots" or "by the stock." In the context of estate planning, it refers to a method of distributing assets to beneficiaries that ensures that each beneficiary receives an equal share of the estate, regardless of when they die.

For example, if a person has three children, and one of them dies before the person does, the deceased child's share of the estate will be divided equally among the surviving children. This is in contrast to the per capita method of distribution, which would give the deceased child's entire share to the surviving children.

Per stirpes distribution is often used when a person has a large estate and wants to ensure that all of their children receive an equal share, even if some of them die before the person does. It can also be used to prevent a single child from inheriting the entire estate and disinheriting the other children.

There are a few things to keep in mind when using per stirpes distribution. First, it is important to understand that the shares of the estate will be divided equally among the surviving children, regardless of their individual needs or circumstances. Second, it is important to make sure that the will or trust clearly specifies that the assets are to be distributed per stirpes. If this is not done, the assets may be distributed per capita instead.

Per stirpes distribution can be a useful tool for estate planning, but it is important to understand how it works before using it. If you have any questions about per stirpes distribution, you should consult with an experienced estate planning attorney.

In addition to the per stirpes method of distribution, there are two other common methods of distributing assets to beneficiaries: per capita and per capita at each generation.

Per capita distribution means that each beneficiary receives an equal share of the estate, regardless of their relationship to the deceased person. For example, if a person has three children, and one of them dies before the person does, the deceased child's share of the estate will be divided equally among the surviving children and the deceased child's own children.

Per capita at each generation means that each generation of beneficiaries receives an equal share of the estate. For example, if a person has three children, and one of them dies before the person does, the deceased child's share of the estate will be divided equally among the surviving children. However, if one of the surviving children also dies before the person does, their share of the estate will be divided equally among their own children.

The choice of which distribution method to use is a personal decision that should be made after careful consideration of the individual circumstances.