Definition
Per capita is a distribution method where your estate is divided equally among all living beneficiaries in a specified group, with no share passing to a deceased beneficiary's children.
This differs from UK intestacy rules, which use per stirpes (by branch) distribution where grandchildren inherit if their parent predeceases you.
What Does Per Capita Mean?
Per capita is a Latin term meaning "by head." Under England and Wales law, it refers to a distribution method where an estate is divided equally among all surviving members of a specified class. If a beneficiary predeceases the testator, their share is redistributed among surviving beneficiaries, not passed to descendants.
This contrasts with the UK's default approach under the Administration of Estates Act 1925. Without a will, estates divide per stirpes ("by branch"), where deceased children's shares pass to their own children. Per capita must be explicitly specified in your will—courts generally apply per stirpes when wills don't specify a method.
Emma leaves her £300,000 estate "to my children, per capita." She has three children. If all survive, each receives £100,000. If one child predeceases Emma, the two surviving children each receive £150,000, and the deceased child's children receive nothing.
David leaves £450,000 to four children. His daughter Rebecca predeceases him with three children. With per capita, the three surviving children receive £150,000 each. With per stirpes, the surviving children receive £112,500 each, and Rebecca's children split her £112,500 share (£37,500 each). The choice creates a £37,500 difference per surviving child.
Per capita is appropriate when you want to keep your estate within one generation. However, the primary risk is unintended disinheritance—grandchildren receive nothing if their parent predeceases. This can cause family disputes if grandchildren were close to you or financially dependent. Excluded dependents may claim under the Inheritance (Provision for Family and Dependants) Act 1975.
Clear will drafting is essential. "My children inherit equally" doesn't specify distribution method. Proper language reads: "to my children who survive me, per capita." A solicitor ensures precise language reflecting your intentions.
Common Questions
"If I leave everything to my children equally and one dies before me, do their children get their share?"
Not if you use per capita distribution. Under per capita, your estate divides only among surviving children. If you want grandchildren to inherit their deceased parent's share, you need per stirpes distribution, which must be specified in your will.
"What's the difference between per capita and the normal way estates are divided in the UK?"
Under UK intestacy rules, estates divide per stirpes ("by branch"), meaning deceased children's shares pass to their children. Per capita ("by head") only benefits survivors and must be explicitly stated in your will. Per stirpes is the UK default; per capita is an intentional alternative.
"When would I want to use per capita distribution?"
Per capita works well when you want to keep your estate within one generation or when one child can provide for their own children. It's simpler for small estates but can exclude grandchildren, so discuss options with a solicitor.
Common Misconceptions
Myth: Per capita is the standard way estates are divided in the UK, so I don't need to specify it in my will.
Reality: UK intestacy rules use per stirpes distribution as the default under the Administration of Estates Act 1925. If a child predeceases you, their share automatically passes to their children. Per capita distribution must be explicitly specified in your will using clear legal language.
Myth: Per capita and equal shares are the same thing—if I say my children inherit equally, that's per capita.
Reality: "Equal shares" and "per capita" are not synonymous. Saying "my three children inherit equally" doesn't clarify what happens if one child predeceases you. Per capita means the estate is recalculated among survivors only, while "equal shares" could be interpreted as per stirpes. Clear will drafting must specify both equality and distribution method.
Related Terms
Understanding Per Capita connects to these related concepts:
- Per Stirpes: The contrasting "by branch" method where deceased beneficiaries' shares pass to their descendants.
- Distribution: The broader category of estate allocation strategies.
- Beneficiary: Under per capita, only surviving beneficiaries qualify to receive shares.
- Equal Shares: While per capita produces equality among survivors, "equal shares" alone doesn't specify distribution method.
- Estate Division: The administration process where executors apply per capita distribution if specified.
Related Articles
- Understanding Distribution Methods in Your Will: Compare per capita, per stirpes, and hybrid approaches for your family.
- Estate Planning for New Parents: Guidance on protecting children and future grandchildren through thoughtful distribution choices.
- Avoiding Unintended Disinheritance: How vague will language can accidentally exclude family members.
Need Help with Your Will?
The choice between per capita and per stirpes distribution significantly affects who inherits from your estate. This decision should be made with professional legal advice.
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Legal Disclaimer: This glossary entry provides general information about UK legal terminology and does not constitute legal advice. For advice specific to your situation, consult a qualified solicitor.