The term is also used in wills and trusts.
Per stirpes life insurance.
When estate planning and shopping for life insurance policies, per stirpes and per capita are terms that describe how money and the death benefit are distributed to your beneficiaries.
In the context of insurance, death benefits and other life insurance assets can be passed along per stirpes.
Per stirpes typically involves more people and can be confusing to some.
Those designations will drive a major portion.
It’s called per stirpes, and it can ensure that your money or property will pass down to living heirs should your beneficiaries die before you do.
On a per stirpes basis, mr.
Another benefit of per stirpes is it can eliminate any questions from other beneficiaries about what should happen to an original beneficiary’s share.
If you write a last will and testament as part of your estate plan, you can include a per stirpes or per capita clause in it ensure that multiple branches of your family get a share of your assets if the beneficiary dies.
Johnson dies, 50 percent of proceeds will go to phoebe, 25 percent to jackson, and 25 percent to jameson.
Per stirpes or per capita… what's the difference?
For example, children of the insured.
This term is used to indicate how your life insurance will be distributed to your beneficiaries.
As mentioned in the article designating beneficiaries using per stirpes or per capita , both designations relate to the death of a beneficiary.
This means that each family member will get an equal share.
Johnson has 2 children, phoebe and carter.
He named them as primary beneficiaries for his life insurance.
This term is typically used when you have multiple beneficiaries or are wanting to distribute your money evenly among family members.
You cannot use per stirpes to designate beneficiaries that are not your grandchildren.