Per Capita Distribution

Per Capita Distribution

A per capita distribution is a method of dividing an estate or trust assets among beneficiaries equally, based on the number of individuals entitled to receive a share. This approach ensures that each eligible beneficiary receives an equal portion of the total estate, regardless of the relationship to the deceased or the number of descendants.

In a per capita distribution, if a beneficiary has passed away before the distribution occurs, their share does not automatically go to their heirs. Instead, the total inheritance is divided among the remaining living beneficiaries. For example, if a deceased individual has three children and one child has died, the estate will be distributed equally among the two surviving children, rather than being divided among the three children, including the deceased one.

This distribution method contrasts with per stirpes, where the deceased beneficiary’s share would be passed down to their own descendants. For instance, if the deceased child had two children, under a per stirpes distribution, the estate would be divided into three parts—one for each of the surviving children and one for the deceased child’s two children, giving each of them a share as well.

In Houston and surrounding areas in Texas, the application of per capita distribution can be influenced by state laws regarding intestate succession and estate planning provisions. Understanding the differences between per capita and per stirpes is essential for effective estate planning, as it can significantly affect the final distribution of assets among heirs.