Per Stirpes and Per Capita Distribution Methods in Intestacy
When a person dies without leaving a valid will, their estate is divided among their heirs according to the laws of intestacy. The distribution of the estate can be made using either the per stirpes or per capita method. These distribution methods are important to understand, as they can affect the distribution of an estate.
Per stirpes distribution method:
The per stirpes distribution method is a way of dividing an estate among the descendants of a deceased person. In this method, the estate is divided equally among the branches of the family, regardless of the number of descendants in each branch. Each branch receives an equal share of the estate, which is then divided equally among the descendants of that branch.
For example, suppose a person dies without a will and has three children, one of whom has predeceased them, leaving two grandchildren. Under the per stirpes distribution method, the estate would be divided into two shares. One share would go to the two surviving children of the deceased person, and the other share would be divided equally among the two grandchildren of the deceased child.
Per capita distribution method:
The per capita distribution method is a way of dividing an estate among the descendants of a deceased person. In this method, each person in the same generation receives an equal share of the estate. If any person in a particular generation has predeceased the deceased person, their share is divided equally among their own descendants.
For example, suppose a person dies without a will and has three children, one of whom has predeceased them, leaving two grandchildren. Under the per capita distribution method, the estate would be divided into four shares. Each surviving child would receive one share, and the two grandchildren would each receive one share.
Which method is used?
The per stirpes and per capita distribution methods are used when the deceased person did not leave a valid will. The method used depends on the applicable law of the state where the deceased person resided. Some states have adopted the Uniform Probate Code, which provides rules for the distribution of the estate when the person dies without leaving a valid will. In other states, the distribution of the estate is governed by common law.
It is important to understand which method is used in the applicable state, as it can affect the distribution of an estate. The per stirpes method may result in a different distribution than the per capita method, particularly when there are predeceased descendants.
Conclusion:
Per stirpes and per capita distribution methods are used to divide an estate among the descendants of a deceased person when they die without a valid will. The per stirpes method divides the estate equally among the branches of the family, while the per capita method divides the estate equally among the members of the same generation. The method used depends on the applicable law of the state where the deceased person resided. Understanding these distribution methods can help ensure that the estate is distributed correctly.
This article was published by a third party and is intended for general informational purposes only and does not necessarily represent the views of Legacy Assurance. Some information may not apply to your situation. It does not, nor is it intended, to constitute legal or financial advice. You should consult with an attorney regarding any questions about probate, living probate or other estate planning matters. Legacy Assurance Plan is an estate planning services company and is not a lawyer or law firm and is not engaged in the practice of law. For more information about the per stirpes vs per capita and other estate planning matters, visit our website at legacyassuranceplan.com.
