Distinctions Between Per Stirpes and Per Capita Distributions in Wills

Estate planning is an essential tool that allows you to decide how your estate will be managed, administered, and divided if you become incapacitated or pass away. A Last Will and Testament typically serves as the primary document in your estate plan, outlining your named beneficiaries and your wishes for how your assets will be divided. 

However, when establishing a will, you will need to decide the distribution structure that your estate will follow. Two of the more common types of distribution structures you must choose from are per stirpes and per capita, and your decision will determine how your assets are distributed after you pass away. 

At Ryland & Merchak, PC, our attorneys have over 80 years of combined experience, helping Virginia clients draft comprehensive estate plans and wills. We can help you determine whether per stirpes or per capita best fits your estate and make informed decisions to provide for your beneficiaries. Located in Woodbridge, Virginia, we serve clients throughout Northern Virginia. Contact us today to schedule a consultation. 

What Is Per Stirpes Distribution?

Per stirpes refers to distributing a beneficiary’s inheritance “by branch” or “by root.” Generally, when you enact per stirpes as a distribution structure, your estate will be equally divided among each of your primary family branches, typically your children, depending on your family structure. 

Per stirpes focuses on what happens to an equal inheritance share if one of your primary beneficiaries passes away before you. In such an event, the equal share that your deceased beneficiary would have received will not be passed to your other surviving primary beneficiaries. Instead, the deceased beneficiary’s share will be directly passed to their primary descendant or split equally among multiple primary descendants, if applicable. 

If you have three children (for example, John, Paul, and Jacob), each of them will receive one third of your estate after you pass away. However, if John passes away before you, his share will not be split between your remaining two children. Instead, John’s one-third share will pass to and be divided among any children he had. Western & Southern Financial Group provides a comprehensive example of how per stirpes works. 

What Is Per Capita Distribution?

Per capita refers to equally dividing your estate "per person,” not just among your primary beneficiaries. Under per capita distribution, all your beneficiaries will receive the same percentage of your estate. However, this applies only to your beneficiaries who are still living after you pass away. 

Unlike per stirpes, per capita does not pass a deceased beneficiary’s share to their descendants. If one of your beneficiaries passes away before you do, their share of your estate will be split evenly among your remaining living beneficiaries. Per capita is typically more straightforward and easier to administer than per stirpes. 

For example, you have three children (for example, Beth, Mark, and Cassidy), and Beth has two children (David and Brittney). Under per capita distribution, all five would receive an equal 20% share of your estate. However, if Beth passes away before you do, her 20% share will not pass to her two children. Instead, her share would be divided equally among your remaining four surviving beneficiaries, granting each of them a 25% share in your estate. 

Which Distribution is Best for You?

Deciding whether to distribute your estate per stirpes or per capita depends on whether you want to prioritize passing your estate to your direct descendants or to all your living beneficiaries. There is no right or wrong choice.  

Per stirpes is useful for dividing your estate equally among your children and their direct descendants. However, the percentage each person in your family receives may vary depending on whether they are a first-generation child or whether multiple grandchildren must split one share equally among them. 

Per capita prioritizes providing an equal share to all your named beneficiaries. While this results in a more uniform division of your estate per person, certain beneficiaries, such as a grandchild or great-grandchild, may not receive anything if you did not name them as beneficiaries and your named child passes away before you, or you did. 

When determining the right distribution structure for you, consider the size of your estate, the number of primary beneficiaries you have, and whether you want to leave equal or different-sized shares to your descendants. 

Contact Our Northern Virginia Estate Planning Attorneys for Tailored Guidance

An estate plan is an essential tool to provide for your loved ones and ensure your family is cared for after you pass away. However, the distribution structure you choose can significantly influence who gets what, and whether one beneficiary’s share will pass to their children or be reallocated among your living beneficiaries if they pass away before you. 

At Ryland & Merchak, P.C., our attorneys, William M. Ryland and Sally Hook Merchak, are dedicated to helping you make informed decisions for how your estate will be administered. With over 80 years of combined experience, we can help you understand the difference between per stirpes and per capita distribution and determine which will work best for your estate. 

Located in Woodbridge, Virginia, we serve clients throughout Northern Virginia. Contact us today to schedule a consultation.