What is the difference between per stirpes and per capita in Canadian wills?

When writing a will, it is essential to understand the differences between per stirpes and per capita distributions as they can greatly impact how assets are distributed among beneficiaries.

Per Stirpes

Per stirpes is a Latin term that means "by branch." In this type of distribution, each branch or generation of the family receives an equal share of the estate, regardless of the number of individuals in each branch. If one of the beneficiaries dies before the testator (the person who made the will), their share of the estate will be divided equally among their children.

For example, suppose a testator has three children, B, C, and D. Child B has two children, B1 and B2. Child D has one child, D1. Here's what happens if both child B and child D pass away before the testator:

• The share of the estate that B would have received will be divided equally between B1 and B2.
• Child C inherits their full share.
• The share of the estate child D would have received is fully passed on to child D1.

Per Capita

Per capita distribution means "by head." In this type of distribution, each beneficiary receives an equal share of the estate, regardless of their relationship to the testator or the number of beneficiaries in each branch. If one of the beneficiaries dies before the testator, their share of the estate will be divided equally among the surviving beneficiaries.

For example, suppose a testator has three children, B, C, and D. Child B has two children, B1 and B2, then passes away before the testator. Child D has one child, D1, and also passes away before the testator. When the testator passes away, the estate will be divided equally among the surviving four beneficiaries. Each of the four beneficiaries will inherit one-quarter of the estate.