If your will or trust specifically names a contingent beneficiary, the result is fairly straightforward. The individual identified will inherit the beneficiary’s portion. However, if a specific name has not been identified, the assets may be distributed a few different ways depending on what stipulations, if any, were made in the original estate plan or what the default provisions of the applicable state law are. Per Stirpes: In some cases, where the will or trust has not specifically identified to whom a specific asset should go, the distribution may be made per stirpes. A per stirpes distribution means that the next generation of the beneficiary receives that beneficiary’s share in equal amounts. One potential downside to this approach is that the spouse of the beneficiary may be left out of the distribution. Per Capita with Representation: In other instances, a per capita distribution occurs. This type of distribution provides another option that leads to equity at each generation level. Essentially, the assets are divided by the number of heirs at the generation level. In other words, predeceased beneficiaries’ children will receive the same portion as their cousins if their parents are also predeceased. The language of your estate planning documents should dictate how beneficiaries and their shares are to be treated. In most instances, it is prudent to revise your estate planning documents so that they accurately reflect your current wishes. Having up-to-date estate planning documents helps ensure that your wishes are clearly communicated to the people who will be involved in administering your estate, saving time, money, and stress for your loved ones during a difficult time.