Per Stirpes is a specific way of dividing up estate assets among beneficiaries that ensures each branch of the family is represented in the distribution of assets. This stipulation is typically included in a will, trust, or similar document, and determines how assets should be distributed following a death.

To understand per stirpes, it helpful to know a few other key terms. For example, the creator of a will or trust is known as a testator or grantor. The people who benefit from the will or trust are known as beneficiaries. The legal term stirpes is Latin for “branches,” and is used in law to represent the descendants of a single ancestor.

Per Stirpes dictates that if a beneficiary, who has not yet received their allotted asset(s), dies before the testator, the beneficiary’s heirs will receive the inheritance instead. These heirs could be the beneficiary’s children and/or other relatives who inherit their deceased parent’s portion. For example, if a daughter receives an inheritance, but passes away before the will or trust is executed, her inheritances is divided among her children.

Per Stirpes is used to specify how assets should be distributed if a beneficiary predeceases the testator. This helps ensure that all beneficiaries are represented, and that each branch of the family is allocated a portion of the estate. It also keeps the number of will or trust beneficiaries consistent and prevents any “skip over” beneficiaries that have no connection to the testator.

Using a per stirpes distribution system can be beneficial in several ways. For example, if a family member is not blood related they may not be eligible to receive an inheritance without it. Additionally, if only one child is specifically named in a will, the per stirpes system ensures that the siblings of the named child will still receive an inheritance.

When setting up an estate plan to ensure that assets are distributed according to the wishes of the testator, it is important to understand the definitions of key legal terms, and to consider the implications of per stirpes distributions. Doing so can help ensure that all intended beneficiaries are included, and that the testator’s wishes are adhered to.