The estate planning term that is “per stripes distributions” and “per capita distributions” are normally used in the last wills and testaments that can be canceled or taken back by the trusts while still living. In short, this describes how you want your property or your assets to be distributed or given to the people whom you will give it all. Per strips, distribution is that if you will give your value to a specific person and they are not living at the time when you die then that share of that specific person should be passed to their family members that are their wife, children, grandchildren, etc, the per person distribution should only go to the specific person who will receive the valuable and also in equal shares.
What is Per Stripes Distributions?
Per Strips is a Latin word which means by representation or by class, it means that each person among many people will get/receive an equal amount of share. If a person among the other is dead then any of the survival that is his/her children, grandchildren, etc. of that specific person will receive the amount or asset on behave of that specific person.
Let us have a look of an example for Per strips distributions
Let us assume that you have 3 children –
Anny has 2 children David and Eva
Bucky, Tony, David, and Eva has no children or grandchildren.
Now if you specify in your will that your property should be distributed to then living children or grandchildren per stripes, then the following will happen –
If all are alive while your death that means Anny, Bucky, Tone, David, and Eva then
Anny, Bucky and Tony each will receive 1/3 part of your property and David and Eva will receive nothing.
If Anny dies before your death and Bucky, Tony, David, and Eva are alive then
Bucky and Tony will receive 1/3 part of your property whereas David and Eva will receive 1/6th share of the property, this means David and Eva get half each of Anny’s part.
Now if Anny, Tony, David, and Eva are alive and Bucky has died before your death then
Anny and tony will receive ½ share each, Bucky’s share will not be made as he has no survival. And as Anny is alive David and Eva will get nothing.
Now see what will be the case if Anny and David die before you then
Bucky and Tony will get their 1-3 part of the property.
And Eva will get what was of Anny that is 1/3 part as drew is also died and he has no survivors Eva will get the complete part of Anny.
Per strips is mostly used I estate planning because it handles the family situations, and thus your lawyer can understand your plans and wishes. Else if any child or person whom you wish to give a part of your property or asset dies, you have to change your will.
What is Per Capita Distributions?
Per Capita is a Latin word which means by headcount or by the total number of people. This means in per capita distributions each person of the specified group will get an equal amount of share.
In this type of will, the share of the dead person is not created instead distributed equally in other members. This type of will is chosen by such people who do not wish that the asset should not go in the hand of someone they do not wish to give.
Have a look at the example for per capita distribution
What will happen if you specify in your will that your property should be divided and distributed equally in your then living children and grandchildren?
If Anny, Bucky, Tony, David, and Eva all are alive then this will happen
Anny, Bucky, Tony, David, and Eva all will receive 1/5 part of your property.
If Anny dies before your death then, Bucky, Tony, David, and Eva all will ¼ part of your property.
Now assume Anny and David have died before you then Bucky, Tony, and Eva will get 1/3 share of your property.
You must specify any generation-skipping shares that you may create in this type of will if you want to use per person distribution.