Posted in Probate & Trust Administration,Wills, Trusts & Estate Planning

Estate planning isn’t just about who gets what—it’s about how your assets are passed down and whether they remain within each family branch or are divided only among the living family members. Two important terms that can significantly affect how your estate is distributed are “per stirpes” and “per capita.”

Per Stirpes: “By Branch”

The Latin term per stirpes means “by branch.” This distribution method ensures that if a named beneficiary (like a child) passes away before you, their share doesn’t vanish—it goes directly to their descendants.

Example:
Let’s say you have three children—Alice, Bob, and Carol. Under a per stirpes distribution, each child would receive one-third of your estate. If Bob dies before you but has two children, his one-third share would be equally divided between his two children (i.e. 1/6 to each of them). The inheritance stays within Bob’s “branch” of the family.

Key Takeaways:

• Keeps assets within the deceased beneficiary’s family line.
• A beneficiary’s descendants inherit if the beneficiary predeceases.

Per Capita: “By Head”

The Latin term per capita translates to “by head.” With this distribution method, only living beneficiaries at the same generational level receive a share. If one of them is deceased, their portion is divided among the surviving beneficiaries and not to his or her children.

Example:
Using the same family—Alice, Bob, and Carol—if Bob is deceased, his one-third share wouldn’t go to his children. Instead, Alice and Carol would each receive half of the estate.

Key Takeaways:

• Only surviving beneficiaries inherit.
• Descendants of a deceased heir do not receive that person’s share.

Quick Comparison:

Feature	Per Stirpes	Per Capita
Translation	“By branch”	“By head”
If a beneficiary dies	Share goes to descendants	Share split among survivors
Who inherits?	Family line continues	Only surviving heirs
Focus	Lineage continuity	Equal division among living
Example Outcome	Grandchildren may inherit	Only children inherit

Choosing the Right Method

Your decision between per stirpes and per capita should reflect your family structure and personal values:

• Per Stirpes may be better if you want to keep your legacy within your descendants’ lineage, ensuring grandchildren or great-grandchildren inherit if their parent predeceases you. Per stirpes is more common.
• Per Capita offers a simpler division among those still living, which may make sense in some family situations or for smaller estates.

Avoid Common Misconceptions

A few things to keep in mind:

• These terms are not interchangeable—they may result in very different distributions, particularly if a beneficiary predeceases you.
• They may not apply automatically. It is advisable to clearly specify your choice in your estate plan, whether that be a will or trust.
• Consulting an estate planning attorney can help you avoid confusion and ensure your plan is legally sound.

Final Thoughts

Understanding the difference between per stirpes and per capita is a small but vital part of crafting an estate plan that honors your intentions. Take the time to clarify how you want your legacy to be distributed—it can provide clarity, reduce disputes, and bring peace of mind to those you care about most.