Per capita and per stirpes are two different methods of distributing an estate or inheritance among a group of beneficiaries, and the main difference between the two is how they handle the distribution of property when one or more of the beneficiaries predeceases the testator (the person who created the will or trust).
Per capita distribution means that the estate or inheritance is divided equally among all living beneficiaries, regardless of their relationship to the deceased. For example, if a person's will specifies that their estate should be distributed equally among their three children, and one of the children predeceases the testator, the remaining two children would split the inheritance equally.
Per stirpes distribution, on the other hand, means that the estate or inheritance is divided by branch of the family, with each branch receiving an equal share of the property. If a beneficiary predeceases the testator, their share is divided equally among their own children or heirs. For example, if a person's will specifies that their estate should be divided per stirpes among their three children, and one of the children predeceases the testator, that child's share would be divided equally among their own children or heirs.
In summary, per capita distribution divides the estate equally among all living beneficiaries, while per stirpes distribution divides the estate equally by branch of the family, with each branch receiving an equal share of the property.
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