In the realm of estate planning, the choice of survivorship option is often overlooked, but in a limited number of cases the choice proves to be a critical one. While the industry standard has long been the “Per Stirpes” approach, I find that most of my clients choose “Per Capita at Each Generation” when the options are fully explained.
Survivorship Options Explained:
Per Stirpes, latin for "by the roots," is a traditional survivorship option that dictates the inheritance distribution based on family lines. In the event that a primary beneficiary predeceases the testator, their share is passed down to their descendants, creating separate pools for each branch of the family tree. While this method is straightforward and has been widely adopted, it may lead to unintended consequences, especially in the unlikely situation where a testator is predeceased by two or more of their children.
Per Capita at Each Generation, on the other hand, takes a more egalitarian approach. In this model, the estate is divided equally among the living descendants at the same generational level, regardless of their parentage or family branch. This method seeks to prevent the dilution of shares among distant branches of the family and ensures that each individual is treated equally, irrespective of the number of children their parents, aunts, and uncles happen to have.
The following diagrams compare these survivorship options for a testator who gives their estate to their two kids, and what would happen in the unlikely event that those two children predecease the testator:



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