Decoding the alphabet soup of personal finance

If you have ever filled out a beneficiary form for a 401(k), annuity, life insurance, or IRA, you likely put someone’s name, address, phone number, and maybe their SSN if you knew it. Immediately beneath or next to their name, you might have noted a check box or a question asking if this was a “per stirpes” beneficiary.

Per Stirpes means that what you leave to you Child #1 will be passed to your grandchildren (the children of Child #1) in the even Child #1 is not around or is unable to receive the inheritance/benefit.

Per Stirpes means “by the roots” according to The Law Dictionary.

Revisiting your beneficiaries on your insurance and retirement accounts is very important as it can have an multigenerational impact and should keep your entire financial plan in mind. If you have questions about how to best structure your beneficiaries, please schedule an appointment with us to discuss your financial plans.

About the Author: Will Nunn, CFP® is a financial planner and owner of Horizon Financial Planning with 8 years of experience helping people and families feel heard, articulate their goals, and build lives they love.