There are things you will need to establish for your heirs in the event you pass away. You should have an estate plan and a business succession plan if you own a business. In addition, there are other matters you need to attend to and think about. For instance, you should consider the difference between “per stirpes” and “per capita” when establishing beneficiaries. Let’s take a closer look at both.
The Difference Between the Two
A lot of people have a hard time understanding the difference between per stirpes and per capita. “Per stirpes” is a term that lays out in the event the beneficiary passes before the testator that the beneficiary’s share goes to their heirs. You can remember this by remembering that “stirpes” means “by branch” in Latin. “Per capita,” on the other hand, means that a portion of the will goes to any surviving descendants within the same generation, and all receive property equally. “Capita” means “by the heads” (or by person).
The Importance of Choosing the Right One
The one you choose is purely up to you. Everyone is different, and different family members have different needs. You might wish to establish a family member as your beneficiary and have the remaining amount pass to their “branch” should this beneficiary pass before you. If there is any ambiguity in language, a court may have to determine how your will is divided up. It’s important to note that different jurisdictions have slightly different meanings of the two terms as well.
Get Help With Your Will
You want your will to be as accurate as possible, and you want it to lay out your intentions clearly to avoid court interference down the road. A knowledgeable attorney can help you better understand the difference between per stirpes and per capita and help you with estate planning.
Author Resource:-
Mark writes often about estate planning. His articles may include topics like real estate closing attorney and business succession laws to help the people in needs. You can find his thoughts at elder law blog.
