When it comes to distributing assets to a group of beneficiaries, two common terms often come up — per stirpes and per capita. These are legal terms that describe different ways of dividing an inheritance if a beneficiary passes away before the person creating the plan.
Understanding how each works can help clarify what happens across generations — and what might be best for your family’s specific structure.
What Does Per Stirpes Mean?
Per stirpes (Latin for “by branch”) means that if a beneficiary is no longer living, their share of the inheritance passes to their descendants, usually their children.
Example:
If a parent names three children as equal beneficiaries, and one of those children has passed away, the deceased child’s share doesn’t get redistributed to the remaining siblings. Instead, that ⅓ share goes to the deceased child’s own children (i.e., the next generation).
This structure keeps each “branch” of the family in line for a portion of the estate, even across generations.
What Does Per Capita Mean?
Per capita (Latin for “by head”) means that if one beneficiary is no longer living, their share is re-divided equally among the remaining named beneficiaries.
Example:
Using the same three-child scenario, if one child is no longer living, the inheritance is now divided equally between the two surviving children. The deceased child’s children (i.e., the next generation) do not receive anything under this distribution style.
This approach focuses solely on the individuals named in the plan — not their descendants — unless those descendants are also named beneficiaries.
Why It Matters
These distribution styles reflect different philosophies on inheritance. Some people want to ensure assets pass down their family line (per stirpes), while others prefer to divide equally among living beneficiaries (per capita).
Important: The Estate Guru platform allows clients to choose how distributions are handled.
A Quick Note on “Remaining Legal Heirs”
It’s also important to distinguish per stirpes and per capita from “remaining legal heirs.” This term generally refers to individuals entitled to inherit under state law when no specific beneficiaries are named — a different process entirely, usually governed by intestacy statutes.