In Latin, “per stirpes” means “by class/stock,” and “per capita” means “by head.” In the process of estate planning and the administration of a will, these terms play a key role.
The best way to illustrate how these terms come into play is with a couple examples. Let’s say Dusty is the testator of a will. Dusty has four children: Ruby, Pearl, Jade, and Sapphire. Ruby has one son (George), and Pearl has two sons (John and Paul). Neither Jade nor Sapphire have any children.
If Dusty’s will specifies that his assets are to be distributed to his descendants “per stirpes”, his assets will pass on with top priority to the class of living beneficiaries closest in relation to him – in this case, his four daughters. Ruby, Pearl, Jade, and Sapphire each receive 1/4 of the assets. Neither George, nor John, nor Paul receives a share.
But, let’s say that Pearl has predeceased Dusty. If the bequest to Pearl was “per stirpes”, then John and Paul will then each receive 1/8 of the assets of Dusty. In the scenario where Ruby predeceases Dusty, George receives Ruby’s quarter share of Dusty’s assets.
Now, let’s say that Dusty’s will specifies that his assets are to be distributed to his descendants “per capita.” In that scenario, when Dusty dies, his assets will be split equally among all surviving descendants. Thus, Ruby, Pearl, Jade, Sapphire, George, John, and Paul will each receive 1/7 of Dusty’s assets. If Ruby and John have predeceased Dusty, then the remaining descendants each receive 1/5 of Dusty’s assets.
