What is the difference between a per Stirpes and a per capita distribution?
Per stirpes means that the beneficiary’s inheritance will be passed on to their next-in-line heir, or heirs. Per capita means that the beneficiary’s inheritance would be divided evenly amongst any surviving beneficiaries.
What is the difference between per capita and per stirpes?
While per stirpes and per capita are similar, there are differences. Per stirpes in Latin means “by branch,” meaning, in this case, that a portion of the will must go to a person or that person’s heirs. Per capita means that any surviving descendants of the same generation distribute property equally.
What is a per capita distribution?
Per capita is a Latin phrase that translates literally to “by head.” In a per capita distribution, each designated beneficiary receives an inheritance only if they are living when the inheritance vests. Usually, that means surviving the testator of the Will or grantor of the Trust.
Should you use per stirpes?
According to the per stirpes definition, this can be a great strategy to use if you want to be sure you’ve set up an Estate Plan that will remain valid and fair even if a Beneficiary passes away before you do.
What does the phrase per stirpes mean?
Per stirpes is a Latin term you can include in your last will and testament to explain who will inherit your assets if one of your beneficiaries passes away before you do. With a per stirpes distribution, if one of your beneficiaries dies before you, their share of your estate will pass to their descendants.
What is an example of per capita?
Example of Per Capita
In 2019, the US population was 328 million, whilst its economic output was valued at $21.43 trillion. To calculate GDP per capita, we get the total GDP and divide by the total population. In this case it is: So in 2019, the GDP per capita of the US was $65,335.
What is an example of per stirpes?
Per Stirpes Example: In your Will, it states that your assets are to be distributed to your living descendants, per stirpes. If all three of your children are still living, your assets will be distributed to them equally, so Sarah, Michael and Derek will all receive 1/3 share of the estate.
Should I put per stirpes on beneficiary form?
If your intent is to leave behind a legacy for that particular beneficiary’s heirs, adding the Per Stirpes designation may be advantageous.
Does per stirpes mean bloodline?
This old Latin term means keeping your assets in your family bloodline … or does it? Keeping wealth in the family is a priority for those who’ve worked hard to build it. But you can never be too careful when it comes to the distribution of your assets.