Per Capita
What Is Per Capita?
Per capita is a Latin term meaning “by head.” In estate planning, it refers to a method of distributing assets equally among living beneficiaries within a specified group.
Under a per capita distribution, each eligible individual receives an equal share of the inheritance.
Why It Matters
Per capita distribution determines how estate assets are divided among heirs. Understanding this method helps ensure that estate plans distribute property according to the testator’s intentions.
It also affects how inheritance is handled if some beneficiaries are no longer living.
How Per Capita Works
When an estate is distributed per capita, the total inheritance is divided equally among the living beneficiaries in the designated group.
For example:
- three living beneficiaries each receive one-third
- if one beneficiary has died, the remaining beneficiaries share the inheritance equally
The exact rules may vary depending on state law and the wording in the will or trust.
Example
A will leaves assets “per capita to my grandchildren.” If four grandchildren are living at the time of distribution, each receives 25% of the inheritance.
Per Capita vs Per Stirpes
- Per capita distributes assets equally among living beneficiaries.
- Per stirpes allows descendants of a deceased beneficiary to inherit that person’s share.
FAQs About Per Capita
Does per capita include descendants of deceased beneficiaries?
Typically no. Only living beneficiaries receive shares.
Why do estate planners specify per capita distributions?
To ensure equal distribution among individuals in the same generation.
Can per capita rules vary by state?
Yes. Some states interpret distribution rules differently.
Related Terms
