Per Capita Distribution
Per capita is a Latin term meaning "by head" that specifies estate distribution equally among all living beneficiaries at the time of death, with deceased beneficiaries' shares redistributed among survivors rather than passing to their descendants.
Exam Tip
Per capita = "by head" - only LIVING beneficiaries receive shares. Deceased beneficiary's share redistributes to other survivors.
What is Per Capita Distribution?
Per capita (Latin for "by head") divides assets equally among all living beneficiaries at the time of the testator's death. Unlike per stirpes, if a named beneficiary predeceases the testator, their share does not pass to their descendants but is instead redistributed among the remaining living beneficiaries.
Per Capita vs. Per Stirpes Comparison
| Aspect | Per Capita | Per Stirpes |
|---|---|---|
| Latin meaning | "By head" | "By branch" |
| Focus | Individual survivors | Family bloodlines |
| Deceased beneficiary's share | Redistributed to survivors | Passes to descendants |
| Grandchildren protection | Not automatic | Built-in |
Real-World Example
Same scenario with per capita distribution:
| Beneficiary | Share |
|---|---|
| Alice | $450,000 (1/2) |
| Carol | $450,000 (1/2) |
| Emily (Bob's child) | $0 |
| Frank (Bob's child) | $0 |
Under per capita, Bob's children receive nothing.
Study This Term In
Related Terms
Per Stirpes Distribution
Per stirpes is a Latin term meaning "by branch" that specifies how estate assets are distributed when a beneficiary predeceases the testator, with the deceased beneficiary's share passing down to their descendants rather than to other surviving beneficiaries.
Testamentary Trust
A testamentary trust is a trust created through a last will and testament that does not come into existence until the death of the testator, at which point it becomes irrevocable and must pass through the probate process.
Probate
Probate is the legal process through which a deceased person's will is validated by a court, debts are paid, and remaining assets are distributed to beneficiaries, typically taking several months to over a year and involving court supervision.