Q. I noticed a provision in my will that divides my estate "per stirpes." What does this mean?
A. While the phrase "per stirpes" may sound complex, the concept is pretty simple.
Per stirpes comes from Latin. It means by branch or by representation. The purpose of including a per stirpes provision in your will is to designate who will inherit your assets in the event that one of the named beneficiaries dies before you do.
Here is an example to help explain. Let's say that Adam has three children: Bob, Charles and Diane. Bob has two children, Emily and Francis. Charles has two children, George and Henry. Diane does not have children.
Adam's will states that his estate should be divided equally among his three children. It adds that the estate should be divided in equal shares per stirpes among his descendants who are living at the time of his death. Assume the net proceeds of Adam's estate are $6 million.
Let's say that Adam's son Bob predeceases him. In that case, with a per stirpes provision, Bob's one-third share will be divided among his two children Emily and Francis.
Adam $6 million (father of three) |
||
| Bob (child who is deceased at the time of his father's death) | Charles (child) | Diane (child) |
| Emily & Francis (grandchildren) | George & Henry (grandchildren) | — |
| Emily and Francis divide Bob's 1/3 among the two of them, so Emily gets $1 million and Francis gets $1 million. | Charles gets 1/3 or $2 million. | Diane gets 1/3 or $2 million. |