Per capita means "by head." Instead of tracing family branches, it counts the people in the eligible class who are actually alive when the distribution happens and gives each an equal share. Nobody inherits by standing in a deceased parent's place; they inherit in their own right or not at all.
Return to the family from the per stirpes example: three children, one of whom died leaving two children. A per capita distribution among descendants counts four living takers — two children and two grandchildren — and gives each a quarter. Compared with per stirpes, the grandchildren gain and the surviving children lose, because branch lines are ignored entirely.
That difference is the whole reason to choose between them. Per capita treats every eligible descendant as an equal individual; per stirpes treats every family line as an equal unit. Neither is more correct, but they produce genuinely different outcomes in families where the number of children per branch is uneven.
You will also encounter hybrid formulations, notably per capita at each generation, which pools the shares available at a generational level and divides them equally among the living members of that generation. Because these variants are easy to misread and state defaults differ, the phrase in your document should be one you have had explained rather than one you recognized.
Frequently asked
- Which should I choose, per capita or per stirpes?
- It depends on whether you think in families or in people. Per stirpes keeps each child's line whole, so a branch with three grandchildren and a branch with one receive equal totals. Per capita equalizes individuals, so a branch with more descendants collects more overall. Parents wanting each child's family treated the same usually pick per stirpes; those wanting every grandchild treated identically lean per capita.
- What does per capita at each generation mean?
- It is a middle path. Shares are calculated at each generational level and divided equally among the living members of that generation, so all grandchildren who take receive the same amount as one another, unlike strict per stirpes where a grandchild's share depends on how many siblings share their parent's branch. Several states use a version of it as the intestacy default, but the mechanics vary enough that you should read your own document's language.
- Do these terms apply to beneficiary designations too?
- They can, and the consequences are larger than people expect because designations override the will. If your retirement account names three children with no per stirpes election and one dies first, the plan's default typically splits everything among the survivors, cutting out that child's family entirely no matter what your will says. Reviewing designations after any death in the family is essential maintenance.