Per Stirpes

What Does Per Stirpes Mean?

Per stirpes is a Latin term meaning “by root.” It is commonly used to describe a situation in which assets are passed to a beneficiary’s descendants if the beneficiary dies before receiving them.

In the context of insurance, death benefits, and other life insurance assets can be distributed per stirpes, meaning that if a beneficiary predeceases the policyholder, the benefits will pass to that beneficiary’s heirs. The wording matters here, and the standard life insurance beneficiary rules cover several ways to direct a payout if the named person dies first.

Insuranceopedia Explains Per Stirpes

As an example of per stirpes, imagine a widow who is about to receive the death benefit from her husband’s life insurance policy. If the widow dies before receiving the benefits, they would be passed on to her children or grandchildren. When those children eventually file the claim, the process for collecting a life insurance payout as a beneficiary works the same way it would for any named recipient.

It is important to have per stirpes arrangements established in advance to ensure that assets are distributed as intended in case of an unexpected death.