Beneficiary forms get filled out quickly. You name your children, you sign, and the paperwork goes in a drawer. Somewhere on that form is a choice between two Latin phrases, and it determines who receives a share if one of the people you named is no longer living when the account pays out.
The difference between per stirpes vs per capita is not complicated once you see how each works, and the two can produce very different results for the next generation.
What the two terms mean
Per stirpes is Latin for “by the roots.” A share follows the branch it started on, so if someone you named is not living, that person’s portion moves down to their own descendants.
Per capita means “by head.” Shares are counted among the beneficiaries living at the time, and a departed beneficiary’s portion is redivided among the others.
The same estate, two outcomes
Picture an account left in equal shares to three adult children. By the time it is distributed, one of them is no longer living and has two children of their own.
- Per stirpes: The two surviving children each receive a third. The remaining third is split between the two grandchildren, keeping that portion in their branch.
- Per capita: The two surviving children each receive half, and the grandchildren receive nothing from this account.
Neither result is wrong. They reflect different intentions, and the form cannot know which you had in mind.
Where grandchildren come in
The appeal of per stirpes, for many people, is that it keeps a share moving down the generations. Because the substitute takers are descendants, the portion reaches a child’s children rather than anyone who married in.
Age adds a wrinkle. Florida lets a parent, acting as natural guardian, receive up to $15,000 in the aggregate for a minor. Above that, a guardianship of the property is generally required unless a trust is in place to hold the funds. Our guide on leaving money to grandchildren covers how to set that up ahead of time.
What Florida does when a document is silent
For someone who dies without a will, Florida distributes to descendants per stirpes by default. Wills fall under a rule known as antilapse: when an outright gift goes to a grandparent of the person who made the will, or to a descendant of that grandparent, and the beneficiary does not survive, that beneficiary’s own descendants generally take the gift per stirpes. Trusts follow a parallel rule.
Wording overrides the default. A phrase such as “to my surviving children” signals a contrary intent, sending everything to the children who are living.
Beneficiary forms play by their own rules
Retirement accounts, life insurance policies, and payable-on-death designations are contracts with the company holding the asset. They pass outside your will, so the antilapse rule does not reach them. The form controls.
- Check whether per stirpes was elected, or the form defaults to dividing among survivors
- Confirm the company accepts per stirpes language, since some require specific wording
- Look at whether contingent beneficiaries are named and still reflect what you want
Designations signed years ago often sit out of step with a will or trust written later. Keeping them aligned is what a coordinated estate plan is for.
Deciding between per stirpes vs per capita
The question is what you would want if one of the people you named is no longer here. Some prefer each branch stay whole across generations. Others would rather those living at the time share equally. Both are reasonable, and the right choice depends on your circumstances.
Key Takeaways
- Per stirpes sends a deceased beneficiary’s share down to that person’s descendants; per capita redivides it among the beneficiaries living at the time.
- Florida applies per stirpes by default in intestacy, and its antilapse rule reaches a similar result for many wills, though wording like “my surviving children” overrides it.
- Beneficiary forms are governed by the contract, not the probate code, so the election has to be made on the form.
- A grandchild inheriting more than $15,000 may need a guardianship unless a trust is in place.
Making sure the words match your intentions
Most people know where they want their assets to go. The gap is between that intention and language on a form nobody has read in a decade. Sorting out per stirpes vs per capita is a short conversation with a real effect on how things unfold.
E.P.P.G. Law of St. Johns works with people throughout St. Augustine, Palm Coast, and St. Johns County. Heather Maltby takes time to understand how a household is put together before recommending language, since wording that fits one situation may not fit the next. Get a free consultation to learn more.
References:
Yahoo Finance (Jan. 7, 2021) “Per Stirpes vs. Per Capita in Estate Planning” and The Florida Senate, Chapter 732 Section 104, Inheritance per stirpes