Intestate Distribution Methods
To begin, intestate distribution is the default distribution method for when someone passes away without a will. In short, a will determines a persons wishes and demands after they pass away.
Strict Per Stirpes Distribution:
The first, and most common, form of distribution is per stirpes distribution method. Here, the estate of a deceased person is divided amongst their 1st generation family members. Furthermore, each member of the family that is alive will take their shares while the left-over shares of a deceased person’s estate are dropped to the next generation. Shares that are dropped will be divided evenly amongst the surviving members of the decedents. This process will continue on until all shares of the estate are distributed out.
Per Capita with Representation:
Next, there is the per capita with representation method of distribution, also referred to as “American per stirpes,”. This method works almost identical to the strict per stirpes method. However, when it comes to distribution, the estate is divided at the tier of the family which has a live taker. For instance, if there are no children alive, but grandchildren, the per stirpes distribution begins at the grandchildren’s generation, rather than the parents. The estate is then divided by the number of lines of descent at that specific tier. Deceased individuals of that tier will have their shares distributed to their surviving family members.
Per Capita at Each Generation:
Finally, with this method, shares are divided at each generation by the number of alive or surviving members involved. At times, the other two methods presented earlier can cause issues. For example, at times members that are equally related to a deceased person may not receive equal shares. These potential issues you may face when using the strict per stirpes and per capita with representation can be avoided. To clarify, per capita at each generation makes sure that the estate is evenly distributed amongst each generation. Again, this process is repeated with each generation until the estates’ shares have been fully distributed.
