Per Stirpes

Hyacinth Devereux names her three children as beneficiaries of her IRA "in equal shares, PER STIRPES." Her son Emlyn dies before her, survived by his own two children. On Hyacinth death, the account is divided:

1. A.One-half to each surviving child, with Emlyn children receiving nothingThat is the per capita result among surviving named beneficiaries, which is what per stirpes is written to avoid.
2. B.One-quarter to each of the two surviving children and one-quarter to each of Emlyn two childrenThat equalizes across four individuals, which is neither per stirpes nor the stated equal-share designation.
3. C.One-third to each surviving child, with Emlyn one-third split equally between his two children, one-sixth eachCorrect. The branch keeps its share and passes it down.
4. D.Entirely to Hyacinth probate estate, because one named beneficiary predeceased herA valid designation with a surviving contingent structure controls, and the IRA passes outside probate.

Why: Per stirpes means "by the branch." Each named child heads a branch, and a deceased child share drops down to that child own descendants. Emlyn one-third therefore splits equally between his two children, one-sixth each, while each surviving child of Hyacinth still takes one-third. Because a valid beneficiary designation controls, the IRA passes outside probate.

A per stirpes beneficiary designation means a deceased beneficiary's share:

1. A.Goes to the insurerThe insurer owes the proceeds regardless of which named parties survive. Keeping the money is never an outcome of a beneficiary designation.
2. B.Is forfeitedNothing is forfeited; the only open question is who steps into the deceased beneficiary's place. Per stirpes answers it by sending the share down that beneficiary's own line of descent.
3. C.Passes to that beneficiary's descendantsCorrect - the share flows down the family line.
4. D.Is split among surviving named beneficiariesDescribes per capita, the alternative designation, and this is the genuinely close call between the two. Per stirpes deliberately keeps the share inside the deceased beneficiary's family branch rather than redistributing it sideways to the other named beneficiaries.

Why: Per stirpes passes a deceased beneficiary's share to that beneficiary's descendants.

Under a per stirpes beneficiary designation, if a named beneficiary predeceases the insured, that share:

1. A.Is split among strangersPer stirpes follows bloodlines, not outsiders. The lapsed share drops down to the deceased beneficiary's own children or other descendants.
2. B.Passes to that beneficiary's descendantsCorrect - per stirpes follows the bloodline.
3. C.Is forfeited to the insurerThe insurer never keeps proceeds because a beneficiary died first. The contract's distribution language decides where the share goes, and per stirpes sends it down that beneficiary's line.
4. D.Always goes to the estatePayment to the estate is the fallback only when no living beneficiary or contingent designation can be identified. A per stirpes designation exists precisely so the share passes to the descendants instead.

Why: Per stirpes directs a deceased beneficiary's share to that beneficiary's own descendants.

Aurelius names his three children - Odile, Perrin and Tamsin - as equal primary beneficiaries of a 900,000 dollar policy, PER STIRPES. Odile dies before her father, leaving two children, Kai and Linnea. Perrin also dies before his father, leaving NO descendants. Tamsin survives her father. How is the 900,000 dollars distributed?

1. A.Tamsin 300,000 dollars; Kai 150,000 dollars; Linnea 150,000 dollars; Perrin estate 300,000 dollarsA per stirpes designation does not pay a predeceased beneficiary estate. With no descendants, Perrin branch lapses.
2. B.Tamsin 300,000 dollars; Kai 300,000 dollars; Linnea 300,000 dollarsThat is a per capita result, dividing equally among the living takers regardless of branch. The designation here is per stirpes.
3. C.Tamsin 900,000 dollars, as the only surviving named beneficiaryThat would be the result of a per capita designation limited to the named beneficiaries. Per stirpes preserves Odile branch for her children.
4. D.Tamsin 450,000 dollars; Kai 225,000 dollars; Linnea 225,000 dollarsCorrect. Perrin branch lapses for want of descendants, leaving two branches to split the proceeds, and Odile half divides between her two children.

Why: Per stirpes means by the branch: a deceased beneficiary share drops down to that beneficiary own descendants. Odile branch survives through Kai and Linnea, so it still takes. Perrin branch does not survive at all, because he left no descendants, so there is no one to take by representation and his share simply lapses. That leaves two surviving branches, Odile line and Tamsin, each taking half of the 900,000 dollars. Tamsin receives 450,000 dollars, and Odile 450,000 dollar branch share is divided between Kai and Linnea, giving each 225,000 dollars.