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Simple Step | Per Stirpes
42 Plays12 days ago
Phillip Ramsey delves into the intricacies of estate planning with a focus on the lesser-known term "Per Stirpes." Using relatable family examples, he explains how selecting this option affects the allocation of IRA benefits and ensures inheritance flows along family lines. Learn how to navigate beneficiary designations to align with your financial intentions, ensuring provision for descendants. Whether you're new to estate planning or looking to deepen your understanding, Phillip's insights offer clarity on making informed decisions to achieve an uncommon life.
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Transcript
Introduction to Uncommon Life
00:00:00
Speaker
Everyone dreams of living an uncommon life, and the best asset you have to achieve your dreams is you. Welcome to the Uncommon Wealth Podcast.
00:00:12
Speaker
We're going to introduce you to people who are living uncommonly. We're also going to give you some tools and strategies for building wealth and for pursuing an uncommon path that is uniquely right for you.
Welcome to Uncommon Wealth Podcast
00:00:26
Speaker
Hello and welcome everybody to another episode of the Uncommon Wealth Podcast. I'm your host, Philip Ramsey. Today, we have a simple step for people out there and to educate you on maybe a term that you have heard, but you don't know exactly what that means.
Understanding Estate Planning and Beneficiaries
00:00:40
Speaker
And dealing with estate planning, IRAs and different beneficiaries, there's a couple ways that you can code the beneficiaries. So in my example, I have three children.
00:00:53
Speaker
I have Luray as my oldest, Beckham as my middle child, and then Oakley is our youngest. And so when I was am filling out like an IRA, there's a section in there for beneficiaries in case I graduate. Well, the first thing is my wife, right?
00:01:08
Speaker
That is going to be my primary beneficiary. And then if I have a will or a trust, then that might be the contingent beneficiary. But sometimes you can also then name out your children that you want to have be your beneficiary.
00:01:23
Speaker
There's a a little box that you can click and it's called per stirpes. And a lot of people have no idea what that is. And so I thought I would do a quick podcast on what that is. And so if you ever are in a place where you have to name your beneficiaries, you'll know what per stirpes is.
Illustrating 'Per Stirpes' with Examples
00:01:40
Speaker
So it's a Latin term. It means the branch. And so if you click on per stirpes, let's say I put my name, then my wife name, and then co-beneficiaries are my three children.
00:01:53
Speaker
What that says when I click on per stirpes is if one of my children were to pass away before, like, let's, let's just say normal. Like if I just wrote those out and I didn't click per stirpes, if one of my kids passed away before I passed away,
00:02:10
Speaker
then their shares would go to the other two. Okay. So I'd have 34%, 33%, 33% because they all have to add up to one hundred percent and then if i don't click on persturpe that mean lara thirty four percent would now go 50, 52, um, the other two kids, my two boys.
00:02:32
Speaker
So in essence, the two boys, we get 50% each. Okay. They get their 33% and then plus half of the 34% that my, my daughter was going to
Clarifying 'Per Stirpes' and Its Importance
00:02:42
Speaker
get. If you click per stirpes, that means that if she has any descendants,
00:02:47
Speaker
that money would then pass down to her kids or in this example, my grandkids. So that's what persterpes means. It means that it bypasses no matter what happens and it stays kind of in the lineage or stays in that branch of the thought that if she were to have been living,
00:03:06
Speaker
that money would have gone down to her children anyway. So it just kind of bypasses her because she'd be passed away in this example. Horrible analogy, by the way. But that's what per stirpes
Concluding Thoughts on Beneficiaries
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Speaker
is.
00:03:17
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So if you're filling out paperwork and you want that money to continue to stay in that line of of lineage, then that's what you click on. It's per stirpes. Anyway, hope this is helpful.
00:03:29
Speaker
Hope this gives you a little bit more clarity and understanding of sometimes beneficiaries or can can be can be daunting. So I wanted this to be something kind of interesting and educational. Thank you for
Podcast Outro and Promotions
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Speaker
tuning in. You've been listening to the Uncommon Wealth Podcast.
00:03:43
Speaker
I'm Philip Ramsey. Until next time, go get yourself educat educated. Thanks. That's all for this episode brought to you by Uncommon Wealth Partners.
00:03:54
Speaker
Be sure to visit UncommonWealth.com to learn more about our services. Don't miss an episode as we introduce you to inspiring people who are actively pursuing an uncommon life.