Understanding "Per Stirpes" in Estate Distribution

'Per Stirpes' Overview

"Per stirpes" is a legal term used in estate planning to ensure assets are passed down through generations in a specific manner, especially when a beneficiary predeceases the grantor. Per stirpes is automatically applied to your FastWill estate plan, and you may have seen this phrase in your Last Will and Testament document: "I give my residuary estate in equal shares to my descendants, per stirpes."

What is 'per stirpes'?

"Per stirpes" is a Latin term that dictates how assets are distributed if a beneficiary dies before the grantor—the person creating the Estate Plan. This designation ensures that if a beneficiary is deceased, their share of the estate is divided equally among their descendants.

To understand "per stirpes" simply, imagine this: If a Beneficiary dies before you, and they have children who survive them, their share of your estate will automatically and evenly go to their children.

Example of Per Stirpes Distribution

For example, consider an estate divided equally among three children. If one child predeceases the grantor, leaving two grandchildren, the per stirpes provision divides the deceased child's share equally between the grandchildren. So, each living child retains their third, and the grandchildren split their parent's third, receiving one-sixth each. This ensures equal distribution across family branches.

Why don't I see my children's names listed as beneficiaries in my Last Will & Testament?

The use of per stirpes provisions by FastWill means each child will not be listed by name, as the distribution is treated collectively for all the children. By not listing the names, the Estate Plan accommodates future descendants, making it flexible and inclusive of all potential heirs.

Key Points:

• Per Stirpes Distribution: When using per stirpes, each child is not listed individually, but the distribution is treated collectively for all the children.
• Accommodates Future Descendants: This approach ensures that the estate plan remains flexible and inclusive of all potential heirs, even those born after the estate plan is created.
• Including Children: Ensure that each child is included in the "Children" section of your Estate Plan.
• Exclusions: If you want to exclude a specific child from the distribution, you can do so by specifying exclusions.

By using per stirpes provisions, you can ensure that your estate will be distributed fairly and equitably among your descendants, regardless of their generation.

Setting Up Beneficiary Lists for Blended Families

For blended families with children from previous marriages, listing all children and step-children as beneficiaries will ensure equal distribution among them, following per stirpes principles. This setup accommodates combined estates and reflects the intent for equal asset division among all children, if you wish.

Does "per stirpes" cover all beneficiary scenarios?

While per stirpes automatically includes descendants of beneficiaries in the distribution, it may not address every possible scenario, such as the death of a beneficiary before distribution. Specific exclusions or additional provisions might be necessary to comprehensively cover these situations.

Key Points:

• Per Stirpes Limitations: While per stirpes is a valuable tool, it may not address all potential scenarios.
• Specific Exclusions: Consider adding specific exclusions or provisions to your estate plan to address unique circumstances.
• Estate Planning Attorney: Consult with an estate planning attorney to ensure your estate plan is tailored to your specific needs and addresses all potential scenarios.

By carefully considering these factors, you can create a comprehensive estate plan that effectively addresses your wishes and provides for your beneficiaries.