Per Capita

In estate planning, per capita is a method of distributing an estate where each beneficiary in a specified group receives an equal share of the inheritance. The term “per capita” translates from Latin as “by the head,” emphasizing that the allocation is made on an individual basis, regardless of generational standing or lineage.

When a per capita distribution is used, the inheritance is divided equally among all living members of a designated class of beneficiaries at the same generational level. For example, if an estate is to be distributed “per capita among the grandchildren” and there are four grandchildren, each grandchild receives an equal share. If one of the grandchildren predeceases the decedent, their share would typically be redistributed equally among the remaining living grandchildren.

This approach contrasts with a per stirpes distribution, where an inheritance is divided by branch of the family, allowing descendants of a deceased beneficiary to inherit their parent’s share. The choice between per capita and per stirpes is an important consideration in estate planning, as it directly affects how assets are distributed.