If you’ve ever filled out a beneficiary form for life insurance or a retirement account, you may have come across the phrase “per stirpes.” It’s a Latin term that means “by branch” or “by family line.”
In simple terms, per stirpes is a designation that controls who gets your money or property if the person you named as your primary beneficiary dies before you.
How It Works
If you leave money to your son, but he passes away before you. If your will or beneficiary form says “per stirpes,” then your son’s descendants (i.e. children and/or grandchildren, etc.) would split his share.
Under Wisconsin law (Wisconsin Statute 854.04), “per stirpes,” “by representation,” and “by right of representation” all mean the same thing. Here’s the basic breakdown:
- The property is divided into equal shares for each child of the original beneficiary (the person you named who predeceased you).
- If one of those children has already passed away but left children of their own, those children get their parent’s share.
- This process repeats down the family line until everything is distributed.
Why It Matters
Using "per stirpes" can be a simple way to make sure your property transferers to the right family members if your first choice beneficiary isn’t alive.
But—it’s not always the right choice for everyone. For example:
- Do you want your assets to go to your beneficiary’s children if they predecease you, or would you prefer it go to their spouse or someone else instead?
- Are the children old enough (or responsible enough) to handle the inheritance on their own?
These are important questions to think through before deciding. Talking with an experienced estate planning attorney can help you make the best decision for your family and your wishes.