If you’re making an estate plan—for example, a will or living trust—or naming beneficiaries for your retirement account or life insurance policy, you might run into the Latin term “per stirpes.” Although you might be tempted to skip right over it, “per stirpes” is a little phrase with big implications. “Per stirpes” tells you how property will be distributed if one or more of the inheritors (beneficiaries) has already died.
What Is Per Stirpes? What Does It mean?
The word “stirpes” has several meanings in Latin, including “roots” and “descendants.” If a will, trust, or retirement account names a beneficiary “per stirpes” (“by roots” or “by descendants”), and the beneficiary has already died, the beneficiary’s descendants will receive the gift instead.
How Does Per Stirpes Work?
When property passes “per stirpes,” it goes down the line to the deceased beneficiary’s child. If the beneficiary had multiple children, the property is divided equally among the children. The definition of per stirpes is better illustrated with an example:
In her will, Tameka leaves everything to her children, per stirpes. She has four children: Aliyah, Booker, Chloe, and Daniel. Aliyah dies in 2018, leaving behind a son, Elijah. Booker dies in 2020, leaving behind two children, Farrah and Gabrielle. When Tameka dies in 2021, Chloe and Daniel—Tameka’s surviving children—each receive 25% of Tameka’s property. Elijah receives the 25% of Tameka’s property that his mother Aliyah would have received had she survived, and Farrah and Gabrielle split the 25% their father Booker would have received had he survived. So Tameka’s property would be distributed in this way:
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- Aliyah (25%) → Elijah (25%)
- Booker (25%) → Farrah (12.5%) and Gabrielle (12.5%)
- Chloe (25%)
- Daniel (25%)
This concept applies to further generations as well. For example, let’s say everything in the previous example holds true, but instead of being a grandmother, Tameka is a great-grandmother. Farrah has two children, Yasmin and Zachary. And Farrah dies a few days before Tameka does. Here’s the new fallout:
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- Aliyah (25%) → Elijah (25%)
- Booker (25%) → Farrah (12.5%) → Yasmin (6.25%) and Zachary (6.25%)
- à Gabrielle (12.5%)
- Chloe (25%)
- Daniel (25%)
Per Stirpes Vs. Per Capita
What if you don’t want inheritance to work this way? Some wills and trusts use “per capita” terminology instead of “per stirpes.” “Per capita” means “by head,” or “by person.” If a “per capita” beneficiary dies before the will maker, trust maker, or account owner does, that deceased beneficiary’s share doesn’t go to the beneficiary’s descendants; instead, it goes to the other surviving beneficiaries.
Here’s an example:
Abel writes a will that leaves his property to his two best friends, Lara and Monty, per capita. Lara dies in 2010, and Abel dies in 2022. Although Lara left behind two children, her children received nothing under Abel’s will. Abel’s property went entirely to Monty, the sole surviving beneficiary.
Another option that avoids legal jargon altogether is to write a will or trust that specifies exactly who should receive your property if your beneficiary dies before you do. If you use WillMaker, a popular software program produced by our sister site Nolo.com, you’ll see that WillMaker encourages you to name beneficiaries and alternate beneficiaries when you make your own will or living trust.
Should You Use “Per Stirpes”?
Whether you choose to leave your property to your beneficiaries per stirpes or per capita will depend on your specific circumstances and relationships. For people leaving property to their children or grandchildren, per stirpes will often match their desires for inheritance.
If you’re not sure which beneficiary designation best suits your aims, you can consult an estate planning lawyer. (See What Can an Estate Planning Attorney Do for You?)