Yes, stirpes is a real word and I know, it's fun to say...
Pronounced [stur-peez] This highly used term is in regards to your estate distribution. Knowing the difference between per capita and per stirpes reflects how you want your money to be received. If missing, your investment(s) maybe disinherited and you won't know. Because you'll be dead. Follow this excellent estate planning technique b/c it will cost you nothing to implement AND give you/your heirs confidence with clarity during your estates distribution.
Before we begin, I want you to know some 'default' payouts maybe per capita and maybe unintentionally distributed. Lack of additional language can be frustrating to your heirs during an already frustrating time (during your death) but look in a will. Per stirpes language is in there because it prevents your investment(s) disinheritance. Period. If I had a napkin in front of us, I would draw out this graphic of these 2 methods of money distributions.Planning for the worst and hoping for the best is one way to describe financial planning. The worst is your beneficiary(ies) die before you. The best is having confidence in your estate correct distribution. This can be done without a will and is today's Financial Friday share. Unfortunately disinheritance happens a lot by accident. It is my hope, this will Not be you or your heirs. If you understand Per capita v Per stirpes payout methods - you will impress financial professionals and have confidence when "your pen meets paper" in the beneficiary designation section of your investment.
This is especially important to include if any contingent beneficiaries are listed. If you are not sure about your own current distribution method... Per capita v Per stirpes... Gain clarity by contacting the companies that you have existing policies with and find out how it is listed now. If you want to change it or add clarity, they will send you a change in benificiary form. Simply adding either, "per stirpes OR per capita" underneath each name gives absolute clarity to your loved ones who receive their portion of your intended estate. Doing this prevents unintentional disinheritance. Something I wish upon you because unfortunately, unintentional disinheritance happens all the time and is easy to solve if this language is in - anyplace you see beneficiaries designations, and this language needs to be in place after EACH name listed.
Please remember, this change does NOT cost you. Simply contact you IRA, 401k, life insurance, annuity, investment call center and get a change in beneficiary form. Look at the diagram listed above again or check out the link below to learn more. You would be surprised how many Errors in payouts happen due to lack of knowledge or lack of this language. Check your documents for per stirpes language or ask you adviser to file an amendment allowing per stirpes.
[ Ссылка ]
Thanks for reading and Look for my weekly Financial Friday share. Follow me, and I will share my decades plus worth of tacit knowledge in personal finance using these mini Friday posts. Their aim is to be simple or easy. Because nothing is both simple + easy. Have a great weekend everyone!! nz
MORE FROM THIS CREATOR
VISIT FACEBOOK + LINKEDIN
[ Ссылка ]
[ Ссылка ]
