Budgeting Financial Planning Estate Planning Per Stirpes vs. Per Capita Estate Distributions: What's the Difference? It's more than just who receives what from an estate By Julie Garber Updated on January 28, 2022 Reviewed by Michael J Boyle Reviewed by Michael J Boyle Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. learn about our financial review board In This Article View All In This Article What's the Difference Between Per Stirpes and Per Capita? Another Thing to Consider The Bottom Line Frequently Asked Questions (FAQs) Photo: Goran13 / Getty Images The estate planning terms "per stirpes" and "per capita" are commonly used in last wills and testaments and in revocable living trusts. They describe how you want your property to be left to your beneficiaries and how you want a bequest to pass on if one of your beneficiaries should predecease you. What's the Difference Between Per Stirpes and Per Capita? Per Stirpes Distributions Per Capita Distributions Should a beneficiary die, these remain in effect Become null and void should the beneficiary die Bequest passes automatically to the deceased beneficiary's descendants Bequest reverts back to the estate to be shared equally by all surviving beneficiaries Per stirpes means that if any of your beneficiaries aren't living at the time of your death, their share of the estate will pass to their descendants. If a beneficiary is deceased and survived by any descendants, those descendants would take what their deceased parent would have received “by representation.” Per capita distributions can only go to the named beneficiaries. They don't pass on to the next generation. They effectively remain in the estate should the beneficiary predecease the decedent, to be distributed equally among the beneficiaries who are still living. Examples of Per Stirpes Distributions Let’s assume that you have three children: Ann, Bart, and Carl. Ann has two children: Drew and Eve. Bart, Carl, Drew, and Eve have no descendants. Here’s what happens in a few different scenarios if your will or living trust states that your property is to be distributed to your “then living descendants, per stirpes.” If Ann, Bart, Carl, Drew, and Eve have all survived you: Ann, Bart, and Carl each receive a 1/3 share. Drew and Eve will receive nothing.If Ann has predeceased you and Bart, Carl, Drew, and Eve have all survived you: Bart and Carl will each receive a 1/3 share. Drew and Eve will each receive a 1/6 share. They would take what Ann would have taken by representation and in equal shares, and 1/3 divided by 2 equals 1/6 each.If Ann, Carl, Drew, and Eve have all survived you and Bart has predeceased you: Ann and Carl will each receive a 1/2 share. A share won’t be created for Bart because he has predeceased you and wasn’t survived by any descendants. Drew and Eve will receive nothing.If Ann and Drew have predeceased you and Bart, Carl and Eve have all survived you: Bart and Carl will each receive a 1/3 share. Eve will receive a 1/3 share. She takes by representation what Ann would have taken. There's no need to create a share for Drew because he has predeceased you and he wasn’t survived by any descendants. Per stirpes is used in estate planning to cover all the bases in the typical family situation so you won't have to amend your estate plan each time a child is born or a beneficiary dies. The term per stirpes is Latin for “by representation” or “by class.” Per stirpes distributions are used more commonly in estate planning than per capita distributions because they cover the typical family situation. Note Make your intentions very clear to your attorney if you don't want this pattern to be part of your estate plan. Otherwise, you'll have to change your plan each time a beneficiary predeceases you if you no longer want this typical distribution to apply. Examples of Per Capita Distributions Here’s what happens if your last will and testament states that your property is to be distributed to your “then living descendants, per capita." If Ann, Bart, Carl, Drew, and Eve have all survived you: Ann, Bart, Carl, Drew, and Eve will each receive a 1/5 share.If Ann has predeceased you and Bart, Carl, Drew and Eve have all survived you: Bart, Carl, Drew, and Eve will each receive a 1/4 share.If Ann, Carl, Drew, and Eve have all survived you and Bart has predeceased you: Ann, Carl, Drew, and Eve will each receive a 1/4 share.If Ann and Drew have predeceased you and Bart, Carl, and Eve have all survived you: Bart, Carl, and Eve will each receive a 1/3 share. "Per capita" is Latin for “by head.” All the living members of the identified group will receive an equal share if the beneficiaries are to share in a distribution per capita. A share won’t be created for the deceased beneficiary, and all the other beneficiaries' shares will be increased accordingly if one of the identified group is deceased. The deceased's share would be absorbed proportionately by the others. Note Some people select this option because they want to avoid having a portion of their estate automatically pass into the hands of someone they find undesirable, which could happen with a per stirpes distribution. An undesirable in-law might gain control over a portion of an estate if the decedent's son is also deceased, so his share goes to his child in a per stirpes distribution. The child's other parent would most likely end up with control over the distribution if the child is still a minor unless other provisions are made. Children can't own or control their own property. A per capita distribution avoids this problem. Note You’ll have to make sure that your estate plan addresses any generation-skipping shares that can be created by this type of arrangement if you prefer to use a per capita distribution. These distributions can have tax implications. Another Thing to Consider Leaving direct shares to grandchildren and great-grandchildren through a per capita or other type of direct distribution when your children have survived you will trigger the generation-skipping transfer tax on the grandchildren's and great-grandchildren's shares. Work closely with your estate-planning attorney to ensure that your estate avoids this extra and costly tax. The Bottom Line Per stirpes distributions can simplify your estate plan if you're confident that you want your beneficiaries' descendants to inherit their portions of your estate. Just keep in mind that you're most likely giving your beneficiary's spouse control of the inheritance if it passes to a descendant who is still a minor and who can't yet legally control or own their own property. A per capita distribution gives you more control over who gets what, but you might have to keep going back and amending your estate plan each time a child is born or if beneficiaries predecease you. Frequently Asked Questions (FAQs) Can I choose a per stirpes or per capita beneficiary for my IRA account? Yes, and you should. The custodian will have a default option and will use that if you don't make your own wishes clear. What is the generation-skipping transfer tax, and when would my estate become liable for it? The generation-skipping transfer tax (GST) is imposed at the federal level and by some states. It applies to both lifetime gifts and bequests from an estate when the beneficiary is more than two generations younger than you if you're related, or more than 37 1/2 years younger if you're not. A generation exists between you and the recipient. It shares the same exemption with the gift and estate taxes, however, so only very large estates tend to be vulnerable to the tax. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. The Law Dictionary. "What Is Per Stirpes?" Mastry Law. "What's the Difference Between Per Capita and Per Stirpes Beneficiary Designations?" Cornell Legal Information Institute. "Per Capita." Kentucky Department of Revenue. "A Guide to Kentucky Inheritance and Estate Taxes," Page 10. Cannon & Thompson, Attorneys at Law. "Should You Choose 'Per Stirpes' or 'Per Capita' Distributions?" Torrance Memorial. "IRA Beneficiary Designations: Per Stirpes vs. Per Capita...What Does It All Mean?" American Bar Association. "Glossary." Related Articles What Is "Per Stirpes"? What Happens to a Predeceased Beneficiary's Share of an Estate? What Is a Life Insurance Beneficiary? Dying Without a Last Will and Testament in Wisconsin Dying Without a Will in Colorado How Do Life Insurance Payouts Work? What Is Per Capita? What Is a Beneficiary? What Happens When a Beneficiary Dies During Probate Dying Without a Will in Arizona Who Inherits in Idaho When There's No Will? Dying Without a Last Will and Testament in Illinois Dying Without a Will in Georgia How to Leave an Inheritance to Your Grandchildren What Is an Inheritance? 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