CARD Q040
A policy divides proceeds equally between two family branches per stirpes. One named child dies first, leaving two children. How is that branch’s share generally handled?
- The deceased child’s estate receives that branch’s share
- The surviving named child receives both branches’ shares
- It passes to that deceased child’s descendants
- All surviving children and grandchildren share the total equally
It passes to that deceased child’s descendants
Per stirpes preserves a deceased beneficiary’s family branch. In this example, the two descendants share their parent’s branch share.
Why each choice is right or wrong
A. The deceased child’s estate receives that branch’s share
Incorrect. Per stirpes generally passes the branch share to descendants, not automatically to the deceased child’s estate.
B. The surviving named child receives both branches’ shares
Incorrect. The surviving branch does not automatically absorb the deceased branch’s share.
C. It passes to that deceased child’s descendants
Correct. Per stirpes preserves a deceased beneficiary’s family branch. In this example, the two descendants share their parent’s branch share.
D. All surviving children and grandchildren share the total equally
Incorrect. Equal shares among all living individuals describes a different distribution approach rather than preserving branch shares.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.