What does "per stirpes" refer to in estate planning?

"Per stirpes" is a legal term used in estate planning that refers to a method of distributing a deceased person's estate in a way that ensures each branch of the family receives an inheritance proportionate to their share. Specifically, it designates that if a beneficiary dies before the testator (the person who made the will), that beneficiary's share is divided equally among their descendants. This means that if a child of the testator passes away before the testator, their portion of the inheritance would go to their children instead of being divided among the surviving beneficiaries altogether.

This concept is important in family dynamics, as it ensures that each family branch is treated fairly, and it helps to avoid disputes among various branches of the family. The correct understanding of "per stirpes" is crucial for anyone involved in estate planning or executing a will, as it outlines the manner in which assets are to be allocated upon the death of the estate holder.

The other choices do not accurately capture the essence of "per stirpes." While there are methods for equally dividing the estate (the first option), charitable strategies (the second), and automatic transfers (the fourth), these concepts do not highlight the specific mechanism of allocating shares among descendants in the event that a beneficiary pre