What Is Per Stirpes?

Per stirpes is a legal term often used in estate planning, including in wills. It designates who should inherit a designated asset (or assets) if the original 澳洲幸运5官方开奖结果体彩网:beneficiary dies be🦄fore the testator (the pe🗹rson writing the will).

In Latin, per stirpes means "by branch" or "by roots." In a will, it signifies that the beneficiary's share of an estate will go to that beneficiary's descendants or heirs. Per stirpes can also designate beneficiaries in an 澳洲幸运5官方开奖结果体彩网:individual retirement 🥃account (IRA).

How Per Stirpes Works

Per stirpes is often used in wills and 澳洲幸运5官方开奖结果体彩网:retirement accounts to ensure that assets are distributed through the branches of a family tree according to the wishes of the testator (person who created the will) or the account holder. Per stirpes includes everyone descending the branch of a family tree from a single person. For example, the descendants of a parent would be thei෴r children, grandchildren, and great-grandchildren.

Per stirpes is used to indicate that, in the event of an "out of order" death in which a beneficiary predeceases the person they are inheriting from, that beneficiary's descendants will split their portion of the inheritance equally.

For example, if a parent has two children, each with two children of their own, and one child predeceases the parent, per stirpes would mean that the parent's estate would be split into two portions: one that would go in full to the living child, and one that would be split evenly between the deceased child's two children. Spouses are not included in a per stirpes designation.

When used, per stirpes is generally written, "to [person's] descendants, per stirpes." Usually, the "person" should be a single person, not a group. The word "descendants" or "issue" must appear. If you wish to indicate that your descendants will inherit, you would write "to my descendants, per stirpes." However, you may also 澳洲幸运5官方开奖结果体彩网:choose a beneficiary who is not your descendant, then indicate their th💟eir descendants would inherit per stirpes.

Per Stirpes vs. Per Capita

Leaving a bequest per stirpes indicates that a beneficiary's share, should they die before the testator, will be split equally among the beneficiary's heirs. Another option is to divide u🅘p an estate "per capita," which means "by the heads."

Per capita indicates that any assets should be divided equally among the testator's 澳洲幸运5官方开奖结果体彩网:surviving beneficiaries. If one beneficiary predeceases the testator, their portion of the inheritance is returned to the estate and divided among the remaining beneficiaries.

For example, if a parent has two children, each with two children of their own, and one child predeceases the parent, 澳洲幸运5官方开奖结果体彩网:per capita would mean that th💎e parent's estate would be split into three𓆏 equal portions: one each to the surviving child and the deceased child's children.

Neither per stirpes nor per capita i♊s inherently better than the other. The correct choice will depend on your family situation and how you wish for your assets to be divided after your death.

Example of Per Stirpes

Consider a family of four generations. A parent, Maria, has two children, Flora and Shauna. Flora has two children as well, Stephanie and Robert. Shauna has one child, River, and two grandchildren (Maria's great-grandchildren), Bruno and Sofia. Maria's will indicates that her children 澳洲幸运5官方开奖结果体彩网:will inherit her estate per stirpes, each receiving half.

If Maria passes away and is survived by𝓡 both her children, her estate wil🎶l be split evenly between Flora and Shauna. None of the grandchildren or great-grandchildren will inherit anything.

If Flora passes away before her mother, half of Maria's estate will go to Shauna; the other half will be split equally between Flora's children, Stephanie and Robert. River, Bruno, and Sofia will not inherit anything.

If Flora survives her mother, but Shauna and River both pass away before Maria's death, then the estate will again be divided in two. Half will go to Flora, and the other half will be split between River's children (Maria's great-grandchildren), Bruno and Sofia. Flora's children, Stephanie and Robert, will not inherit anything.

The Bottom Line

Creating a will can be stressful, but it's important to designate how you want your assets to be divided after your death. If you do not have a will, your assets will be divided according to the state laws where you live.

However, because legal terminology like per stirpes can be confusing, a mistake in how your will is written can create confusion and difficulties for your heirs. To avoid this, work with an 澳洲幸运5官方开奖结果体彩网:estate planner who is familiar with your state laws to create a꧅ will that a♒ccurately reflects your wishes.