Understanding Per Stirpes Vs. Per Capita
Creating a will ensures your assets go to the right people and reduces stress for your loved ones. A last will and testament outlines how your property should be shared after you pass away.
How Assets Are Distributed: Per Stirpes vs. Per Capita
When writing a will, you may hear the terms per stirpes and per capita. These determine how your estate is divided among your children and grandchildren.
Per Stirpes Distribution
With per stirpes (or “by right of representation”), your estate is split equally among your children. If a child passes away before you, their share goes to their children (your grandchildren).
Example: Connie has three children: Cara, Russ, and Susan. If Connie dies, each gets one-third of her estate. If Susan dies before Connie, Susan’s share is split between her two children, Gabby and Austin. Final shares:
- Cara: 1/3
- Russ: 1/3
- Gabby: 1/6
- Austin: 1/6
Some states adjust per stirpes rules if multiple children pass away before the parent, so check local laws.
Per Capita Distribution
With per capita, all surviving heirs at the same level get an equal share. If a child passes away, their children do not inherit their share unless specified.
Example: If Connie’s will states her estate goes to her children per capita and Susan passes away first, only Cara and Russ inherit, splitting the estate equally. Susan’s children receive nothing.
If Connie’s will instead states her estate goes to all descendants per capita, then living children and grandchildren share equally. If Susan has passed away, the shares are:
- Cara: 1/4
- Russ: 1/4
- Gabby: 1/4
- Austin: 1/4
Why You Need an Estate Planning Attorney
Choosing per stirpes or per capita affects how your assets are passed down. Since state laws vary, an attorney can ensure your wishes are followed. They can also help with tax issues, legal paperwork, and preventing family conflicts.
A well-planned will gives you peace of mind and protects your loved ones. Contact us today to make sure your estate is handled as you intend.
Learn more: Per Stirpes vs Per Capita: What Do These Mean in a Will?
