Definition
Per Stirpes, a Latin term meaning “by branch,” is a legal method used in estate planning and wills to distribute assets among the descendants of a deceased heir. When an estate is distributed per stirpes, the assets are divided into parts at the level of the decedent’s children. If a child dies before the decedent, that child’s share is then divided equally among their descendants—i.e., the grandchildren.
Examples
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Example 1: A Simple Scenario John dies intestate (without a will). He had four children: Alice, Bob, Carol, and Dave. All except Dave are alive. Dave had two children, Emma and Frank. Using per stirpes distribution, John’s estate is divided into four equal parts. Alice, Bob, and Carol each receive one-fourth, while the remaining one-fourth share intended for Dave is equally divided between Emma and Frank, granting them each one-eighth of the estate.
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Example 2: Multiple Descendants Michael dies with a will specifying per stirpes distribution. He had three children: Judy, Kevin, and Laura. Laura had predeceased Michael and had three children of her own: Nina, Oscar, and Paul. Here, each of Michael’s live children (Judy and Kevin) gets one-third of the estate, while the one-third share entitled to Laura is distributed equally among her children, Nina, Oscar, and Paul, with each receiving one-ninth.
Frequently Asked Questions (FAQs)
What does per stirpes mean in estate planning?
In estate planning, per stirpes refers to a way of distributing an estate where descendants of a deceased beneficiary will inherit the share their parent would have received, divided equally among them.
How does per stirpes differ from per capita distribution?
While per stirpes divides the estate by branch, per capita distribution assigns equal shares to all surviving direct descendants, without regard to generational tiers.
Is per stirpes distribution automatic in estate intestate situations?
Per stirpes is commonly used in intestate succession, but specific rules regarding this distribution method depend on state laws.
Can a will explicitly exclude per stirpes distribution?
Yes, a will can specify a different method of distribution, such as per capita, to override automatic per stirpes rules.
What happens in a per stirpes distribution if one of the deceased’s children has no descendants?
If a child has no descendants, their share is typically redistributed equitably among the surviving branches of the family.
Related Terms with Definitions
- Intestate: Dying without a legal will. State laws determine the distribution of the deceased’s assets.
- Beneficiary: A person who inherits assets from a will, trust, or insurance policy.
- Will: A legal document detailing a person’s wishes regarding the distribution of their property after death.
- Probate: The legal process of verifying a will and distributing an estate under the court’s supervision.
- Estate Planning: The process of arranging for the disposal of an individual’s estate during their life to reduce uncertainties and taxes post-death.
- Trust: A fiduciary arrangement wherein a trustee holds and manages assets for the benefit of the beneficiaries.
- Testate: Dying with a valid will.
Online Resources
- Nolo’s Legal Encyclopedia on Per Stirpes Distribution
- The Importance of Per Stirpes in Wills on Investopedia
- American Bar Association’s Guide on Estate Planning
References
- Black’s Law Dictionary
- “Wills, Trusts, and Estate Administration” by Dennis R. Hower and Peter Kahn
- “The Complete Book of Wills, Estates, & Trusts” by Alexander A. Bove Jr. Esq.
- Internal Revenue Service (IRS) Estate Planning Guidelines
Suggested Books for Further Studies
- “Wills, Trusts, and Estates, Tenth Edition” by Robert H. Sitkoff and Jesse Dukeminier
- “The Trustee’s Legal Companion: A Step-by-Step Guide to Administering a Living Trust” by Liza Hanks and Carol Elias Zolla
- “Estate Planning Basics” by Denis Clifford
