Per stirpes

Per stirpes example A

Comparison of per stirpes and per capita inheritance

Per stirpes is a legal term used in the context of inheritance and estate planning that determines how property is distributed among a decedent's heirs. The term is derived from Latin, meaning "by roots" or "by branches," and it specifies that the estate is divided equally among the branches of the decedent's family. This method contrasts with "per capita," where the estate is divided equally among all surviving descendants, regardless of their generational level.

Overview

In a per stirpes distribution, if a beneficiary predeceases the decedent, the beneficiary's share of the inheritance is passed down to their own heirs. This approach ensures that the decedent's estate is distributed down through the family lines, keeping the shares within the immediate family, even if one of the original beneficiaries is no longer alive.

Application

Per stirpes is commonly applied in situations where a will or trust does not specify the method of distribution, or when the laws of intestacy come into play. Intestacy laws vary by jurisdiction but often default to a per stirpes distribution when no will is present, or the will is deemed invalid.

Example

For instance, consider a decedent who has three children: A, B, and C. Child B predeceased the decedent, leaving two children of their own. If the decedent's estate is to be distributed per stirpes, it would be divided into three equal parts. Child A would receive one-third, Child C would receive one-third, and the two children of Child B would split the remaining third, each receiving one-sixth of the estate.

Advantages and Disadvantages

The per stirpes method is favored for its fairness in ensuring that each branch of the family receives an equal share of the estate. It reflects an intention to treat each line of descendants equally, regardless of the number of members in each line.

However, per stirpes can also lead to unintended consequences, especially in families with complex structures or where there is a significant age difference among heirs. It may result in a distribution that the decedent did not anticipate, especially if there are many generations involved.

Legal Considerations

When drafting a will or estate plan, it is crucial to specify the method of distribution clearly. If per stirpes is desired, it should be explicitly stated to avoid any ambiguity that could lead to disputes among heirs. Additionally, individuals should consider consulting with an estate planning attorney to ensure that their estate plan accurately reflects their wishes and complies with local laws.

See Also

• Intestacy
• Estate planning
• Will (law)
• Trust law