Which term denotes the method by which a deceased beneficiary's share passes to their heirs?

Which term denotes the method by which a deceased beneficiary's share passes to their heirs?

• A. Per capita
• B. Per stirpes
• C. Fiduciary
• D. Executor

Answer: (B)

The concept tested is how a beneficiary’s interest is passed on when that beneficiary doesn’t survive the person who made the distribution. Per stirpes means “by branch” and determines that a deceased beneficiary’s share goes to that beneficiary’s own descendants. In other words, the deceased beneficiary’s portion is distributed to their heirs rather than being reallocated among the surviving beneficiaries in the next generation. For example, if a will leaves shares to “my children per stirpes” and one child dies before the testator leaving grandchildren, that deceased child’s portion goes to their grandchildren, not to the surviving siblings. The other terms don’t describe this mechanism: per capita refers to distribution among living beneficiaries at the generation level, fiduciary refers to a role or capacity handling assets, and executor is the person who administers the estate.

The concept tested is how a beneficiary’s interest is passed on when that beneficiary doesn’t survive the person who made the distribution. Per stirpes means “by branch” and determines that a deceased beneficiary’s share goes to that beneficiary’s own descendants. In other words, the deceased beneficiary’s portion is distributed to their heirs rather than being reallocated among the surviving beneficiaries in the next generation. For example, if a will leaves shares to “my children per stirpes” and one child dies before the testator leaving grandchildren, that deceased child’s portion goes to their grandchildren, not to the surviving siblings. The other terms don’t describe this mechanism: per capita refers to distribution among living beneficiaries at the generation level, fiduciary refers to a role or capacity handling assets, and executor is the person who administers the estate.