Per stirpes and per capita are different ways of distributing something among a group of beneficiaries. One approach focuses on equal shares among branches of a family, while the other divides based on individual proportions or percentages.
Per Stirpes: Individuals entitled to a per stirpes distribution see the deceased primary beneficiary's share divided equally among their descendants, usually children. This ensures fair distribution across generations, even if some beneficiaries are no longer alive. In the example below, because one child is deceased, the inheritance will still be divided into 3 equal shares. The deceased child’s ⅓ is just divided again amongst her children.
Per Capita: If individuals are entitled to a per capita share of profits, each person receives a portion that corresponds to their ownership percentage or investment. It ensures an equal division according to the established criteria. In the example below with the same scenario the asset is now divided into only 2 equal shares and the deceased child’s children get nothing. This would be accomplished within the tool by selecting "the other beneficiaries listed here".
*It is important to distinguish remaining legal heirs from both per stirpes and per capita. Remaining legal heirs refer to individuals who are still alive and legally entitled to inherit from a decedent based on the laws of intestacy or a will.