Per Stirpes vs Per Capita Estate Distributions: What's the Difference?

Per stirpes vs per capita are two methods of distributing an estate to beneficiaries. Both Per stirpes vs per capita determine how assets are divided among a group of people, but they differ in their approach to allocating the assets.

Per Stirpes Distributions	Per Capita Distributions
Bequest passes automatically to the deceased beneficiary’s descendants	Bequest reverts back to the estate to be shared equally by all surviving beneficiaries
Should a beneficiary die, these remain in effect	Become null and void should the beneficiary die

What is a “Per Stirpes” Distribution in a Will?

Per Stirpes distribution means dividing the estate by branch. In other words, each branch of the family tree treated equally, regardless of how many individuals are in each branch. If a beneficiary from a branch deceased, their share will divided equally among their children (the deceased beneficiary’s children). This method ensures that each branch of the family treated equally, and it also takes into account the concept of generational representation.

What is a “Per Capita” Distribution in a Will?

Per Capita distribution means dividing the estate equally among individuals. In other words, each person treated equally, regardless of whether they are in the same branch of the family or not. If a beneficiary deceased, their share will divided equally among the remaining beneficiaries. This method ensures that each individual is treated equally, and it does not take into account the concept of generational representation.

To My Children, Per Capita

To illustrate the difference between these two Per stirpes vs per capita methods, let’s consider a hypothetical example. Suppose an individual has three children, A, B, and C. Child A has two children, child B has one child, and child C has no children. If the individual has a will that uses the Per stirpes vs per capita method, the estate will divided into three equal parts, with each part going to each child. If child A has predeceased, the two parts originally designated for them will divided equally between their two children. If the will instead uses the Per Capita method, the estate will divided into five equal parts, with each child and grandchild receiving one part.

Summary

In summary, Per Stirpes distribution divides the estate by branch, while Per Capita distribution divides the estate equally among individuals. Per stirpes vs per capita methods have advantages and disadvantages, and it is important to consult an estate planning attorney to determine which method is most appropriate for your specific situation.

Examples of Per Stirpes Distributions

Per Stirpes distribution, also known as “by representation,” is a method of estate distribution in which the beneficiaries determined by branch. Here are some examples of how Per Stirpes distribution works:

Let’s say a person named John passes away, leaving behind his estate to his three children, Alex, Ben, and Carol. If Alex passes away before John, Alex’s share of the estate will go to his children (John’s grandchildren) equally, according to the Per stirpes vs per capita method. So if Alex had two children, his share of the estate would divided equally between them, and the remaining two-thirds of the estate would be split equally between Ben and Carol.

Another example would if John had three children, Alex, Ben, and Carol, and Alex had two children, Emma and Finn. If Alex passes away before John, his share of the estate would divided equally between his two children, Emma and Finn. If John then passes away, the estate would divided into three equal parts, with one part going to each of John’s children. But since Alex has already passed away, Emma and Finn would each receive half of Alex’s share of the estate, while Ben and Carol would each receive one-third of the remaining estate.

A third example would be if John had two children, Alex and Ben, and Alex had three children, Emma, Finn, and Grace. If Alex passes away before John, his share of the estate would divided equally between his three children. When John passes away, the estate would divided into two equal parts, with one part going to each of his children, Alex and Ben. But since Alex has already passed away, his share of the estate would divided equally among his three children, Emma, Finn, and Grace, with each receiving one-third of Alex’s share.

Examples of Per Capita Distributions

Per Capita distribution is a method of estate distribution in which the beneficiaries determined by headcount rather than by branch. Here are some examples of how Per Capita distribution works:

Let’s say a person named John passes away, leaving behind his estate to his three children, Alex, Ben, and Carol. If Alex passes away before John, Alex’s share of the estate would divided equally among the remaining beneficiaries (Ben and Carol) according to the Per Capita method. So if John’s estate was worth $300,000, Ben and Carol would each receive $150,000.

Another example would if John had three children, Alex, Ben, and Carol, and Alex had two children, Emma and Finn. If Alex passes away before John, his share of the estate would divided equally among the remaining beneficiaries (Ben, Carol, Emma, and Finn) according to the Per stirpes vs per capita method. So if John’s estate was worth $500,000 and Alex’s share was $100,000, each of the remaining beneficiaries would receive $100,000.

A third example would be if John had two children, Alex and Ben, and Alex had three children, Emma, Finn, and Grace. If Alex passes away before John, Alex’s share of the estate would be divided equally among the remaining beneficiaries (John and Ben) according to the Per Capita method. When John passes away, his estate would also divided equally among the remaining beneficiaries (Ben, Emma, Finn, and Grace) according to the Per stirpes vs per capita method. So if John’s estate was worth $600,000 and Alex’s share was $100,000, each of the remaining beneficiaries would receive $150,000.