What is the difference between pro rata and per stirpes

Within a beneficiary designation, per capita typically means an equal distribution among your children. Per stirpes distribution uses a generational approach. Spouses are generally not part of a per stirpes distribution. Assume that you had two children. With per stirpes, if one child were to precede you in death, the other child would receive half, and the children of the deceased child would get the other half.

Create a list of all your accounts that have beneficiary designations and keep it with your will. Phone: Email: mike. If you do not have access to an email account, please call Your location: No route could be calculated.

Arguably, one of the most important decisions involves identifying to whom, and how, you want assets to pass when you die. Whether you create a revocable living trust, a last will and testament, or both, you will need to name one or more beneficiaries who will receive distributions. In some cases, these decisions are relatively simple.

For example, you are a parent of one, and you want to leave percent of your assets to this one child, and you only have one grandchild who will inherit your assets in the event your only child does not survive you — in this scenario, your distribution wishes are relatively straightforward.

For situations where there are multiple beneficiaries at the same level such as children, grandchildren, siblings, nieces, and nephews, etc. Per stirpes means that assets are divided equally by each branch of the family when there were surviving descendants in that branch.

If Adam and Barbara survive Ann, but Chris does not, it is necessary to determine whether Chris had any descendants who survived Ann.

In contrast, per capita means assets pass equally to the heirs who are living at the time of the death of the testator at the level stated. Under per capita distribution, assets are divided equally among the beneficiaries alive at the level stated in the estate planning documents. September 13, Michigan Estate Planning Lawyers. August 27, Planning Process. Feel free to call and get your free quotation.

Facebook-f Twitter Youtube Linkedin-in Instagram. Contact Us.