Overview
Per Stirpes Allocation is a legal term used in estate planning to describe a method of distributing an estate among heirs. Under this system, if a beneficiary predeceases the decedent (the person who has died), that beneficiary’s share is passed down to their descendants, rather than being distributed among the remaining beneficiaries.
Detailed Explanation
In a per stirpes allocation, the estate is divided into equal parts at the first generation of heirs. Each branch of the family receives a share, and if one member of that branch is deceased, their share passes to their children. This ensures that descendants inherit their parent’s intended share, maintaining the estate’s distribution among equal branches of the family tree.
For example, if a decedent leaves behind three children (A, B, and C) and one of those children (B) has already passed away, the allocation would work as follows:
- Child A receives one-third of the estate.
- Child C receives one-third of the estate.
- The third one-third that would have gone to Child B is instead divided equally between Child B’s children (if B had, say, two children, then each would receive one-sixth of the estate).
This method contrasts with per capita allocation, where the estate is divided equally among all surviving heirs without regard to generational lines.
Application in Texas
In Texas, a per stirpes allocation is commonly prescribed in wills and trusts to ensure that a decedent’s wishes regarding family inheritance are honored, especially when there are multiple generations involved. It is important for individuals creating estate plans in Texas to specify this method clearly to avoid potential disputes among heirs and ensure a smooth distribution process.
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