PER CAPITA
Back to GlossaryDefinition
A method to pass on wealth by family member head count (E.g., Testator passes $100 to 10 surviving children and grandchildren. Each receives $10.).
Summary
Per capita is a Latin term meaning 'by the head' used in estate planning and inheritance law. It's a distribution method where inherited assets are divided equally among all eligible beneficiaries at the same generational level, regardless of which family branch they come from. Each person receives an equal share based on the total number of individuals, not family lines. This differs from 'per stirpes' distribution, which divides inheritance by family branches first, then among members within each branch.
Usage Context
Understanding per capita distribution is crucial when studying estate planning, wills and trusts, inheritance law, and family wealth transfer strategies. It's particularly important when comparing distribution methods and their tax implications.
Common Confusions
- Confusing per capita with per stirpes - thinking inheritance follows family lines rather than equal individual distribution
- Believing that per capita means each generation gets equal amounts
- Assuming deceased beneficiaries' shares automatically go to their children
- Thinking per capita applies to all types of inheritance by default
