Per Stirpes

What is per stirpes?

Per stirpes, which translates to “by roots” or “by branch,” is an important legal term to understand in estate planning. It dictates what happens if a named beneficiary dies before the testator (i.e., the person who makes the will). In this situation, if per stirpes distribution is designated in the last will or trust, the deceased beneficiary’s shares of the estate will be divided equally among their surviving descendants. 

A per stirpes distribution works lineally downward and only with direct heirs. So, a deceased beneficiary’s descendants would only include biological children, adopted children, and biological/adopted grandchildren—not step-children who haven’t been adopted, spouses, siblings, or other relatives.

Per stirpes differs from the per capita designation, which dictates that if a listed beneficiary dies before the testator, their shares will then be divided equally among the surviving beneficiaries—instead of equal shares being distributed to the deceased beneficiary’s heirs.

FAQs 

What does per stirpes mean for a beneficiary?

The per stirpes designation means that if a named beneficiary passes away before the testator, that beneficiary’s share will be distributed either to their lineal descendants or, if they don't have their own children, to the remaining beneficiaries of the testator.

What is an example of per stirpes?

For an example of per stirpes, consider a family in which the grandparent, Gabriel, has named his two children, Alex and Lena, as beneficiaries in his last will. Lena dies before Gabriel, leaving her three children behind. When Gabriel dies, his assets will be distributed equally between his son, Alex, and his deceased child's grandchildren, who will each receive one-third of Lena's shares.

What happens with per stirpes if there are no descendants?

If there are no descendants of a named beneficiary who passes away before the testator, the named beneficiary’s share of assets will be distributed to the remaining living beneficiaries of the will or trust.

What is the downside of per stirpes?

There can be some downsides of per stirpes in estate planning, including unequal asset distribution among grandchildren, complexity in distribution in multigenerational or blended family structures, some family members being left out (such as unadopted step-children), and administrative burden if shares flow to minors.