Per Stirpes: Definition, Examples, and Additional Resources
Definition
Per stirpes is a method of distributing an estate in which each branch of a family receives a portion of an inheritance, with descendants standing in for a deceased family member to inherit in their place. The term “per stirpes” means “by the roots” in Latin, indicating that the inheritance follows the family lineage. This distribution contrasts with a per capita distribution, where each living beneficiary receives an equal share.
Examples
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Example 1:
Frank passes away without a will. He was predeceased by his wife and one child. He is survived by two other children and the descendants of the deceased child. Using a per stirpes distribution:
- Frank’s estate is divided into three equal shares, one for each of his children.
- The two surviving children each receive one-third of the estate.
- The remaining one-third goes to the descendants (children) of the predeceased child, divided equally among them.
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Example 2:
Linda dies and has three children, but one predeceased her leaving two grandchildren. As per the per stirpes allocation:
- Linda’s estate is divided into three equal parts.
- Each surviving child receives one-third.
- The two grandchildren of the deceased child together receive the third part, shared equally.
Frequently Asked Questions (FAQs)
Q1: What does “per stirpes” mean in a will?
A1: In a will, “per stirpes” ensures that if an heir predeceases the testator, their share of the inheritance is passed down to their descendants rather than being redistributed among other living heirs.
Q2: How does per stirpes differ from per capita distribution?
A2: Per stirpes bases the distribution on family branches, with descendants inheriting in place of deceased individuals. Per capita distribution splits the estate equally among all living beneficiaries regardless of lineage.
Q3: Is per stirpes automatically applied if there’s no will?
A3: Not necessarily. The application of per stirpes or per capita distribution depends on the jurisdiction’s intestacy laws governing estates without a will.
Q4: What state laws recognize per stirpes distributions?
A4: Many states recognize per stirpes distributions, but the specifics can vary. It’s best to consult local laws or an attorney to understand the rules in your area.
Q5: Can a will explicitly choose a per stirpes distribution?
A5: Yes, a will can specify a per stirpes distribution to ensure the estate is divided as intended among descendants.
- Per Capita: A distribution method where each beneficiary receives an equal share of the estate, regardless of family branches or lineage.
- Heir: A person legally entitled to inherit property or assets from a deceased individual’s estate.
- Intestate: Dying without a legal will, resulting in the application of state laws to distribute the estate.
- Bequest: A specific personal property left to an individual or organization through a will.
Online References
Suggested Books for Further Studies
- “Wills, Trusts, and Estates” by Robert H. Sitkoff and Jesse Dukeminier
- “The Complete Book of Wills, Estates & Trusts” by Alexander A. Bove Jr.
- “Plan Your Estate” by Denis Clifford
Fundamentals of Per Stirpes: Estate Planning Basics Quiz
### What is the main feature of a per stirpes distribution?
- [x] Each branch of a family receives a divided inheritance through descendants.
- [ ] All beneficiaries share the inheritance equally.
- [ ] Only children of the deceased receive an inheritance.
- [ ] All property is sold and cash is distributed equally.
> **Explanation:** The main feature of a per stirpes distribution is that each branch of a family gets a portion of the estate, with descendants inheriting in place of their deceased ancestor.
### How is a per stirpes distribution of an estate generally allocated?
- [ ] Based on when beneficiaries contact the estate executor.
- [x] Following bloodlines and allocating shares to descendants of deceased heirs.
- [ ] Splitting strictly by the number of living family members.
- [ ] Equally among all named beneficiaries.
> **Explanation:** A per stirpes allocation follows bloodlines, granting descendants of deceased heirs their ancestor's share.
### Which Latin phrase is synonymous with "per stirpes"?
- [ ] Per annum
- [x] By the roots
- [ ] Through effort
- [ ] For each person
> **Explanation:** "Per stirpes" translates to "by the roots" in Latin, indicating lineage distribution.
### What happens to an heir's share if they die before the estate's owner in per stirpes?
- [ ] It is redistributed among all living heirs.
- [x] It passes down to the deceased heir's descendants.
- [ ] It reverts to the estate.
- [ ] It remains with the state.
> **Explanation:** If an heir dies before the estate's owner under a per stirpes system, the heir's share goes to their descendants.
### Which of the following is an example of per stirpes inheritance?
- [ ] Robert's estate is split equally among his three living friends.
- [ ] All of Michael's five distant relatives receive equal shares of his estate.
- [x] John's estate is divided with portions for deceased children's offspring.
- [ ] Sally's will names only her surviving spouse as the sole heir.
> **Explanation:** John’s divided estate providing for deceased children’s offspring is an example of per stirpes inheritance.
### If per stirpes distribution leads to multiple recipients within a branch, how is the share managed?
- [x] It is further divided equally among the descendants.
- [ ] Given to the eldest descendent only.
- [ ] Distributed randomly among remaining heirs.
- [ ] Held in trust indefinitely.
> **Explanation:** The share is further divided equally among the descendants within the branch.
### Can a will specify a per stirpes distribution directly?
- [x] Yes, a will can specify per stirpes.
- [ ] No, inheritors decide the method.
- [ ] Only a court can determine this.
- [ ] Per stirpes cannot be specified in a will.
> **Explanation:** A will can directly specify a per stirpes distribution to control how the estate is inherited.
### Why is understanding per stirpes important for estate planning?
- [ ] It determines the value of estate taxes.
- [ ] It affects the market value of properties.
- [x] It dictates how assets are distributed among family branches.
- [ ] It reduces the number of heirs automatically.
> **Explanation:** Comprehending per stirpes is crucial as it dictates how the estate’s assets will be distributed among family lines.
### In a per stirpes distribution, who receives a share if a direct descendant refuses the inheritance?
- [ ] It is voided and reverts to the state.
- [ ] It goes to the spouse of the descendant.
- [x] It passes down to the next eligible descendants.
- [ ] It is shared equally among the person’s siblings.
> **Explanation:** If a direct descendant rejects the inheritance, it passes down to their next eligible descendants.
### How does the number of predeceased heirs affect per stirpes?
- [x] It determines how many divisions are needed among sublineages.
- [ ] It limits the estate size.
- [ ] It invalidates the decedent's will.
- [ ] It requires all assets to be sold.
> **Explanation:** The number of predeceased heirs affects how many divisions are requisite among family sublineages in a per stirpes distribution.
Thank you for delving into the intricacies of per stirpes distribution with us. Keep enriching your knowledge on estate planning!
