What is the Meaning of Per Stirpes? Part 1

Whenever I review drafts of a will we have prepared for a client there are certain terms and clauses that I can almost always guarantee will trigger questions.  One of those is the term “per stirpes”.

Per stirpes is actually a Latin term meaning “by branch”.  It is used to describe how assets are distributed when someone dies.  Let’s say I leave a bequest in my will to person A.   What happens if A dies before me?  The next question is “who then inherits what would have been A’s share?

I have several options.  I could decide that A’s share should go to another specifically named person.  Let’s call him B.  I could also decide that l want A’s share to lapse so that A’s share is to be distributed to the persons named to receive the residuary (ie. the balance) of my estate.

I could also,however, choose to pass on A’s share to A’s descendants.  That is done with a per stirpes designation.  If A has 2 children, C and D, a per stirpes designation means C and D step into A’s shoes and split A’s share.

Finally, I could choose a designation of “per capita”.  I’ll explain more next week.