What does "per stirpes" signify in estate distribution?

"Per stirpes" is a Latin term meaning "by branch." In the context of estate distribution, it signifies that the inheritance is divided among the branches of a family rather than being distributed equally among individual heirs. When an estate is distributed per stirpes, if a descendant predeceases the decedent, their share is not lost; instead, it passes down to that descendant's children. This method ensures that each branch of the family receives an equal portion of the estate, which reflects the intention of maintaining fairness across family lines.

The option stating it is a method of equal distribution among siblings only is limited in scope and does not capture the broader family structure that "per stirpes" encompasses. Similarly, a fixed percentage distribution to each heir does not align with the concept of dividing by branches of descent, as it does not consider generational lineage. Lastly, a distribution method favoring the eldest child is contrary to the principle of equal distribution among branches, as "per stirpes" aims for balance rather than prioritizing one child or descendant. Thus, the correct answer highlights the essential characteristic of "per stirpes" in ensuring equitable distribution throughout family branches.