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Stripes Vs Capita

9/22/2013

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Per StirpesPer stirpes is the Latin term that literally means “by the roots.” If an estate is distributed per stirpes, each living member of a group of beneficiaries closest to the person making the distribution will receive an equal share of the estate.However, if one of the beneficiaries predeceases the person making the distribution, that beneficiary’s descendants will take by representation the share of the estate to which their parent would have been entitled.By way of illustration, let’s assume:Jack had three children, Adam, Bill, and Carl
Adam has two children, David and Evan
Bill has one child, Frank, and
Carl has three children, Grant, Henry and Ian.
In his will, Jack specifies that his estate is to be distributed to his children, per stirpes.If Jack is survived by Adam, Bill, and Carl, each of his children would be entitled to 1/3 of his estate.However, if Adam predeceases Jack, Bill and Carl will each be entitled to 1/3 of Jack’s estate, and Adam’s share will be divided equally between his children, David and Evan. Frank’s other grandchildren would not be entitled to any portion of the estate.Per CapitaPer capita is a Latin term that literally means “by the head.” If an estate is distributed per capita, all the living members of an identified group will receive an equal share of the decedent’s estate.However, if a member of the identified group predeceases the decedent, then his or her share would pass to the other members of the group rather than to his descendants.Using the same illustration as we did earlier, if Jack’s will specifies that his estate is to be distributed to his children, per capita, and all his children survive him, then the result will remain the same – each of his children would be entitled to 1/3 of Jack’s estate.However, if Adam predeceases Jack, then Adam’s share would be split between Bill and Carl, with each of them receiving a ½ share. None of the grandchildren would be entitled to any part of the estate.
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