What Is Per Stirpes?
A legal designation meaning "by branch" that automatically distributes a deceased beneficiary's share of the death benefit to their descendants rather than reallocating it to the surviving beneficiaries.
Understanding Per Stirpes
Per stirpes is a Latin term meaning "by the root" or "by the branch" that is used in beneficiary designations to specify how the death benefit should be distributed if a named beneficiary predeceases the insured. When a beneficiary is designated per stirpes, their share of the death benefit passes to their own descendants (children, grandchildren) rather than being redistributed among the surviving beneficiaries. This ensures that each "branch" of the family tree receives its intended share of the inheritance.
The alternative to per stirpes is per capita, where the death benefit is divided equally among the surviving beneficiaries, without passing a deceased beneficiary's share to their descendants. Per stirpes is the more commonly used method in estate planning because it preserves the intended family distribution even when a beneficiary predeceases the insured.
Per stirpes designations are particularly important in multi-generational estate planning. Without this designation, a family branch could be entirely disinherited if their parent (the named beneficiary) predeceases the insured. For families with children, grandchildren, and potentially great-grandchildren, per stirpes provides automatic, equitable distribution that aligns with most people's intentions without requiring constant updates to the beneficiary designation as family circumstances change.
When designating beneficiaries per stirpes, policy owners should clearly indicate the designation on the beneficiary form because per stirpes is not the default distribution method. Most carriers default to per capita unless the per stirpes designation is specifically requested. Per stirpes also coordinates with contingent beneficiary designations, providing a comprehensive backup framework. For families with complex structures (blended families, adopted children, step-relationships), the policy owner should work with an estate planning attorney to ensure the per stirpes designation produces the intended outcome under Tennessee law and matches the broader estate plan documented in wills and trusts.
Important Things to Know
Per stirpes passes a deceased beneficiary's share to their descendants automatically by family branch.
Prevents a family branch from being disinherited if their parent predeceases the insured.
Per capita, the alternative, divides the benefit equally among surviving beneficiaries only with no passthrough to descendants.
Per stirpes is the most commonly used distribution method in multi-generational estate planning.
Reduces the need to constantly update beneficiary designations as family circumstances change.
Must be specifically requested on the beneficiary designation form because per capita is typically the default.
Works alongside contingent beneficiary designations to provide a layered safety net.
Coordinates with wills and trusts as part of comprehensive multi-generational estate planning.
Seeing Per Stirpes in Practice
Illustrative example: A 70-year-old Clarksville resident names her three children as equal primary beneficiaries (33.3% each) per stirpes on a $600,000 whole life policy. One child predeceases the insured, leaving two grandchildren. Upon the insured's death, the surviving two children each receive $200,000 (their original 33.3%), and the deceased child's two grandchildren each receive $100,000 (splitting their parent's 33.3% share). Without per stirpes, the entire $600,000 would have been split only between the two surviving children ($300,000 each), leaving the grandchildren with nothing. This example is illustrative only; actual distributions vary by policy terms and state law. In a second illustrative scenario, a 65-year-old Knoxville grandfather names his two adult children as equal per stirpes primary beneficiaries on a $400,000 universal life policy. One child has three children of his own; the other has none. If the parent of the three grandchildren predeceases the insured, his $200,000 share passes equally to his three children ($66,667 each). The other adult child still receives her $200,000. This per stirpes structure ensures the grandchildren are not disinherited even though their parent is no longer living. Actual distributions vary by policy terms.
Per Stirpes in Tennessee
Tennessee law recognizes per stirpes beneficiary designations on life insurance policies. Under Tennessee's inheritance statutes and TCA Title 31, per stirpes is a well-established principle of succession that applies to various financial instruments. The TDCI requires carriers to honor per stirpes designations as written on the policy. Tennessee residents with multi-generational families are encouraged to consider per stirpes designations as part of their overall estate plan under TCA Title 56. In practice, agents in our network help Tennessee policy owners understand whether per stirpes or per capita better aligns with their estate planning goals. For Tennessee families with multiple generations, blended family structures, or substantial assets passing outside of probate, per stirpes designations can prevent unintended disinheritance and reduce the need for frequent beneficiary updates. Agents work with Tennessee estate planning attorneys to coordinate per stirpes designations on life insurance policies with the broader distribution provisions in wills, trusts, and other estate documents, taking advantage of Tennessee's favorable trust laws and absence of state estate or inheritance tax.
Explore Per Stirpes in Detail
Get answers to specific questions about per stirpes.
Related Glossary Terms
Primary Beneficiary
The first person or entity designated to receive the life insurance death benefit proceeds upon the death of the insured.
Read Definition →Contingent Beneficiary
The secondary person or entity designated to receive the life insurance death benefit if the primary beneficiary is unable to receive the proceeds, typically because they have predeceased the insured.
Read Definition →Death Benefit
The amount of money paid by the insurance carrier to the beneficiary upon the death of the insured person.
Read Definition →Irrevocable Beneficiary
A beneficiary designation that cannot be changed or removed by the policy owner without the written consent of the named beneficiary.
Read Definition →Frequently Asked Questions About Per Stirpes
Per stirpes passes a deceased beneficiary's share to their descendants (children, grandchildren). Per capita divides the benefit equally among surviving beneficiaries, with a deceased beneficiary's share redistributed rather than passed down. Per stirpes preserves each family branch's inheritance; per capita does not.
Yes. Per stirpes is not the default beneficiary designation for most life insurance policies. You must specifically indicate "per stirpes" on the beneficiary designation form. Without this designation, most carriers will default to paying only surviving named beneficiaries.
Per stirpes is typically used with individual person beneficiaries, not trusts. When a trust is the beneficiary, the trust document itself controls how proceeds are distributed among trust beneficiaries. If you want per stirpes-like distribution, the trust document should specify this.
Under Tennessee law, legally adopted children are treated the same as biological children for inheritance purposes, including per stirpes distributions. Stepchildren who have not been legally adopted are generally not included in per stirpes distributions unless specifically named. To avoid ambiguity, policy owners with blended families should work with an estate planning attorney to ensure the beneficiary designation matches their intent.
Most major A-rated (A.M. Best) life insurance carriers operating in Tennessee offer per stirpes as an option on their beneficiary designation forms. However, the exact procedure, language, and documentation requirements vary by carrier. An agent in our network can confirm the per stirpes designation procedure for your specific policy and ensure the designation is properly recorded.
Yes. Many estate plans use per stirpes designations on primary beneficiaries while also naming contingent beneficiaries as a final safety net. The per stirpes designation handles distribution within each named branch, while the contingent designation provides backup if all primary beneficiaries (including their descendants) are unable to receive proceeds. This layered approach maximizes protection against unintended outcomes.
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