What does the legal term per stirpes mean?
Per stirpes is a Latin phrase that translates literally to “by roots” or “by branch.” In the estate context, a per stirpes distribution means that a beneficiary’s share passes to their lineal descendants if the beneficiary dies before the inheritance vests.
What does per stirpes mean for beneficiaries?
Per stirpes is a Latin term you can include in your last will and testament to explain who will inherit your assets if one of your beneficiaries passes away before you do. With a per stirpes distribution, if one of your beneficiaries dies before you, their share of your estate will pass to their descendants.
What happens with per stirpes if no descendants?
In the pure per stirpes system, the estate is divided into primary shares at the generation nearest to the decedent (the decedent’s children). Any deceased children who have no living descendants are disregarded in determining the number of primary shares.
Should you use per stirpes?
The term “per stirpes” is a Latin term that means “by representation” or “by branch,” and it has specific meaning in estate planning. 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.”
Should beneficiaries be per stirpes?
Per stirpes stipulates that should a beneficiary predecease the testator, that beneficiary’s share of the inheritance goes to their heirs. Per capita takes the opposite approach: all inheritance is divided equally amongst the testator’s beneficiaries.
How does per stirpes work?
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 go to spouse?
With a per stirpes designation, any amount that you leave for a beneficiary that predeceases you will be passed down evenly to his or her own heirs, usually children. Per stirpes generally refers to every person lower down in a family tree, so spouses are generally excluded.
Which is better per stirpes or per capita?
Per stirpes means that the beneficiary’s inheritance will be passed on to their next-in-line heir, or heirs. Per capita means that the beneficiary’s inheritance would be divided evenly amongst any surviving beneficiaries.