What is difference between per stirpes and per capita?
Under per capita, the share of any beneficiary that precedes you in death is shared equally among the remaining beneficiaries. With per stirpes, if one child were to precede you in death, the other child would receive half, and the children of the deceased child would get the other half.
What do you need to know about per stirpes?
Key Takeaways 1 Per stirpes stipulates that a beneficiary’s heirs receive the inheritance should the beneficiary die before the testator. 2 The term refers to every person down a branch of a family tree. 3 Children may represent their parents if a parent passes before the decedent.
What’s the difference between per stirpes and pro rata?
Pro-rata is the name of a distribution formula that determines HOW MUCH of each asset each person receives. Per stirpes means that if a beneficiary dies, then his or her children can inherit that beneficiary’s share. By contrast, pro-rata means that each asset of the estate is divided equally between the eligible beneficiaries.
What’s the difference between per stirpes and per capita?
Contrast per stirpes with per capita, which means taking “by total headcount” or “by a total number of individuals.” In the estate planning context, this means that if the beneficiaries are to share in a distribution per capita, then all of the living members of the identified group will receive an equal share.
What does per stirpes mean in estate law?
Per stirpes is a legal term stipulating that should a beneficiary predecease the testator—the person who has made out the will—the beneficiary’s share of the inheritance goes to his heirs.
Key Takeaways 1 Per stirpes stipulates that a beneficiary’s heirs receive the inheritance should the beneficiary die before the testator. 2 The term refers to every person down a branch of a family tree. 3 Children may represent their parents if a parent passes before the decedent.
Pro-rata is the name of a distribution formula that determines HOW MUCH of each asset each person receives. Per stirpes means that if a beneficiary dies, then his or her children can inherit that beneficiary’s share. By contrast, pro-rata means that each asset of the estate is divided equally between the eligible beneficiaries.
What does ” in equal shares per stirpes ” mean?
Traditional per stirpes means that the children of a deceased parent divide up their parent’s share. In the above example, the living child would take one-third of the estate, while the two children of the first deceased child would each take on-half of their parent’s share, which would be one-sixth each.
Contrast per stirpes with per capita, which means taking “by total headcount” or “by a total number of individuals.” In the estate planning context, this means that if the beneficiaries are to share in a distribution per capita, then all of the living members of the identified group will receive an equal share.