What Is Per Stirpes Distribution and Why Do I Need It?

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Per stirpes is a legal term in Latin. The estate of a decedent is distributed per stirpes if each branch of the family is to receive an equal share of an estate.

How does it work? Let's say Grandma and Grandpa has two children who each have two children. Their grandchildren!

If Grandma and Grandpa's will and retirement plan documents do not have per stirpes language, then if Child A dies before Grandma and Grandpa, their inheritance will go to Child B.

Most people want the heirs of Child A—the grandkids—to receive that 50% portion of the inheritance from Grandma and Grandpa.

However, you’d be surprised how many IRA and 401k custodians do NOT have per stirpes language in their documents.

Check for per stirpes language for your documents, and ask your financial advisor to help you file an amendment allowing for per stirpes.

By following these simple steps, you can protect the legacy of the ones you love.

To learn more, give us a call today. Or visit our website. We can't wait to talk with you.