When planning an estate, it’s essential to consider how assets will be distributed if a beneficiary predeceases the testator. Per stirpes is a legal term used in wills and estate planning that ensures an inheritance is passed down to the next generation if the original beneficiary has unexpectedly passed away. Understanding this concept is crucial for ensuring that your estate is distributed according to your wishes.
1. Understanding “Per Stirpes” Distribution
The term per stirpes is Latin for “by branch.” It means that if a beneficiary (such as a child) dies before the testator, their share of the inheritance automatically goes to their own descendants, rather than being redistributed among surviving beneficiaries.
For example, if a will states that an estate is to be divided equally among three children, per stirpes, and one child dies before the testator, that child’s portion will pass directly to their children (grandchildren of the testator) rather than being divided among the remaining two children.
This distribution method ensures that the family branch of the deceased beneficiary still receives their rightful inheritance.
2. How Per Stirpes Works in Canada
In Canada, per stirpes is recognized in estate planning and probate law across all provinces and territories. However, the wording in a will must be clear to avoid misinterpretation.
If per stirpes is not explicitly stated, most provinces follow a default intestacy law, which may distribute assets differently.
For specific provincial and territorial laws, visit:
- Alberta – Wills and Succession Act
- British Columbia – Wills, Estates and Succession Act (WESA)
- Manitoba – Intestate Succession
- New Brunswick – Wills and Estates Law
- Newfoundland and Labrador – Intestate Succession Act
- Northwest Territories – Estate Administration
- Nova Scotia – Probate Act
- Nunavut – Estate Administration
- Ontario – Succession Law Reform Act
- Prince Edward Island – Probate and Estates
- Quebec – Civil Code of Quebec – Inheritance
- Saskatchewan – Intestate Succession Act
- Yukon – Estate Administration
3. Per Stirpes vs. Per Capita
Another common distribution method in estate planning is per capita, meaning “by head.” Unlike per stirpes, where a deceased beneficiary’s share is passed to their descendants, per capita redistributes the inheritance among surviving beneficiaries only.
Example: Per Stirpes vs. Per Capita
Scenario: An estate is left to three children, but one predeceases the testator, leaving two grandchildren.
- Per Stirpes: The deceased child’s share is divided equally among their children (the grandchildren).
- Per Capita: The deceased child’s share is divided equally among the remaining two children (the surviving siblings).
For more information on inheritance methods, visit the Canadian Bar Association – Wills and Estates Law.
4. When to Use Per Stirpes in an Estate Plan
Using per stirpes in a will is beneficial if:
- You want to ensure that your grandchildren inherit if their parent (your child) passes away before you.
- You prefer fair distribution among family branches.
- You want to avoid disputes or confusion in inheritance distribution.
However, clear wording is essential in a will to avoid misinterpretation. Consulting an estate lawyer can help ensure that your intentions are properly documented.
For estate planning assistance, visit:
- Legal Aid Ontario – Wills and Estate Planning
- People’s Law School BC – Estate Planning Resources
Ensuring Your Will Reflects Your Wishes
Per stirpes is a powerful tool in estate planning that ensures assets are distributed fairly among family branches, even if an intended beneficiary passes away before the testator. Understanding this distribution method and incorporating clear language into your will can prevent confusion and unintended consequences. For professional estate planning guidance, consult a lawyer or financial advisor to ensure your estate is handled as intended.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult a qualified professional for estate planning in Canada.
