Updated July 28, 2026. Quick answer: Per stirpes sends a deceased beneficiary’s share down to their own children. Per capita redistributes it among your surviving named beneficiaries. If a child predeceases you, that single word decides whether your grandchildren inherit anything.
The scenario the words are for
You name three children equally. One dies before you, leaving two children of their own.
| Per stirpes | Per capita | |
|---|---|---|
| Surviving children | 1/3 each | 1/2 each |
| Grandchildren of the deceased child | Split that 1/3 | Nothing |
Most people, asked plainly, want per stirpes — they intend a deceased child’s family to keep that share. Many forms default to per capita, and the choice is often made by whichever box was easier to tick.
The interaction worth knowing
Where per stirpes brings grandchildren in, remember they are not eligible designated beneficiaries — see why the minor-child exception does not reach them. The result can be a young beneficiary on a standard 10-year clock, which may or may not be what you wanted.
Terminology varies
Custodian forms use different labels for the same concepts, and some offer neither option explicitly. If the form does not let you express your intent, ask — most will accept specific language.
Sources
SECURE Act (2019); SECURE 2.0 (2022); final RMD regulations published 19 July 2024; IRC §401(a)(9); IRC §1014 (basis of property acquired from a decedent); IRC §664 (charitable remainder trusts). Cross-checked July 2026 against professional analyses from Kitces, Grant Thornton, Ascensus, Charles Schwab and Kiplinger. Indexed figures and state-specific rules are flagged rather than asserted.
This states what the cited authority says. It is not tax or legal advice, and beneficiary planning turns on family facts and state law that no page can see.