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In Law, What Does "Share and Share Alike" Mean?

Mary McMahon
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Updated: May 16, 2024
Views: 30,437
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Navigating the complexities of estate distribution, the principle of "share and share alike" emerges as a beacon of equity, ensuring a balanced allocation of assets among beneficiaries. According to a report by the American Academy of Estate Planning Attorneys, this approach is favored in estate planning to prevent disputes, with over 60% of individuals opting for equal distribution to maintain family harmony. When an heir predeceases the estate division, their portion is not lost but rather redistributed equally among the surviving beneficiaries, as detailed by CSU Ohio. This method reflects a commitment to fairness, aiming to simplify the inheritance process and uphold the decedent's intent for equitable sharing.

A will is the most common example of a document that may use a share and share alike clause. When preparing wills, testators can talk about the risks and benefits of various methods of distributing the estate with an attorney. This model of distribution can be a good option when an estate is easily divisible, or when shared assets like real estate are unlikely to create conflict. If children express a wish to co-own a house and share rights to it, for example, they could benefit from this type of will. In another situation, acrimony might make equitable sharing more difficult.

Trusts can also be split on a share and share alike basis. Each beneficiary receives regular payments from the trust in the same amount, with no party getting more or less than others. As beneficiaries die, their shares are returned to the pool, increasing the payout for other trust members. A will may establish a trust for financial or other reasons, in which case the testator may request that the trustee use this distribution system.

In situations involving the division of assets, there are a number of guidelines that must be followed. Usually, an executor or trustee is put in charge of handling matters. The work of this person includes accurately determining the total value of the assets and making sure they are fairly divided. Any fraudulent activity, such as trying to pocket proceeds from the estate, would be grounds for a lawsuit, as it represents a breach of fiduciary duty. Sometimes, a lawyer acts in this role, using her knowledge of the law to make sure the assets are handled appropriately and responsibly.

Testators may want to discuss the terms of their wills with prospective survivors before death. This can provide an opportunity for preparing family members and troubleshooting situations that may arise. It can also be useful for establishing a clear record on the testator's wishes for the estate, reinforcing the will and reducing the risk of confusion.

What Does Share and Share Alike Mean in a Will?

In a last will and testament, the legal term "share and share alike" refers to any part of an estate that has been bequeathed to two or more individuals. So, for example, Isaac owns 30,000 shares of XYZ, Inc. When he makes out his will, he specifies that the shares are to be divided among his heirs, Natalie, Alan and Ted. In a normal scenario, each of them would receive 10,000 shares.

Occasionally, one of the beneficiaries dies before the testator, or the person who made the will, or the will is probated and proceeds distributed. When a beneficiary fails to survive the testator, one of three things can happen. In one of these scenarios, shares left to the deceased are split among the survivors. So in the previous example, if Alan dies or disappears, his 10,000 shares of XYZ Inc. would be divided between Natalie and Ted.

Alternatively, Isaac may have designated a "contingent beneficiary." A contingent beneficiary is second in line; if the primary heir dies or is otherwise unable to receive the inheritance, it goes to the contingent beneficiary. Continuing the example, let us suppose Isaac named Natalie, Alan and Ted as his heirs, and adds Emma as a contingency beneficiary. In this case, Alan's 10,000 shares of XYZ Inc. would go to Emma.

A third situation can arise if Alan passes on and Isaac included a "residue clause" in his will. In this context, the term refers to whatever is left of the estate ("residue") after any expenses, such as outstanding debts, legal expenses or estate taxes have been taken out or have not been otherwise bequeathed to heirs. This residue may be divided among surviving heirs and contingents, or returned to the estate and distributed to survivors under the jurisdiction's laws of intestacy (in other words, as if the testator had died without a will).


Is Share and Share Alike the Same as Per Stirpes?

The foregoing scenario is an example of "per capita" distribution. This is Latin for "by the heads," and is simply a legal description of share and share alike distribution of a decedent's assets.

"Per stirpes" (pronounced "per stree-pez") means "by the branches." Under normal circumstances, unless otherwise specified, a testator's assets would go to the closest generations, such as siblings and children. In a per stripes situation, all genetic descendants of the testator are considered (spouses are not). If one of the beneficiaries dies before the testator's assets are distributed, that beneficiary's natural or legal (adopted) child may stand in their place. Alternatively, a testator may specify that all his descendants receive a portion of the estate.

As an example, let us suppose Alan in the above example has two children, Alan Junior and Alicia. Since Alan Senior has died or disappeared, his children would receive 5000 shares of XYZ Inc, each. In a scenario in which Alan Senior survives and Isaac decides on a per stirpes distribution of the estate, the three siblings and Alan's children would each receive 6,000 shares.

The term per stripes is now considered obsolete and rarely used. Part of the reason is that it is often misunderstood, even by some estate lawyers. For example, a person may state in her will that the estate is distributed to her children per stripes. Technically, this is incorrect; instead of "children,", the term that should be used is "descendants." To the layperson, this may seem like splitting hairs; however, such phrasing can potentially cause serious problems if the will is contested or litigated.

Another potential problem lies in the fact that each state, or jurisdiction, has a slightly different definition of per stirpes. Nonetheless, this is the best option for someone who wants to ensure that all of his or her assets are shared by all members of the family, including grandchildren and great-grandchildren. The testator and attorney must simply make sure that the word "descendants" or "issue" is used in legal documents instead of "children."

What Does Share and Share Alike Mean?

In conclusion, the key here is to understand that a share and share alike will with a per stirpes clause is the most effective way to minimize the chances of conflict among heirs, as everyone gets an equal share. Keep in mind however that such an arrangement works best when distributing liquid assets or stocks and bonds. When it comes to real estate or other types of tangible property (such as vehicles or jewelry), share and share alike can be cumbersome.

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Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a MyLawQuestions researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

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Discussion Comments
By anon359679 — On Dec 19, 2013

I'm glad all of you had such an easy time! I, on the other hand, am not! But if all goes well, the share and share alike clause in my dad's will is going to save me!

My dad, died leaving a 31 year old will leaving everything to me and my half brother (his stepson, my mom's son from a previous marriage), my parents later divorced, and as you might imagine, my dad no longer had any relationship with his stepson for 25 years, but failed to update his will!

To make things worse, my brother predeceased my dad, leaving two children my dad never met and who are trying to claim half of my dad's $2.4 million dollar estate through anti lapse statutes!

One is now 19 and the other 7 (meaning the babies' momma will get the 7 year old's share). My dad has never met the kids, nor would he have wanted them to have half his estate versus his one and only blood related son!

It has yet to be ruled on in court, but the share and share alike clause is the only possibility that people whom my dad didn't know won't get half the estate he spent his life making! So ask your estate planners all about what happens if your heirs predecease you because anti lapse laws are crap!

By golf07 — On Jul 06, 2012

I was appointed the executor of my parents estate when the second one passed away. We all knew they intended their estate to be distributed in a share and share alike way.

The problem was there was some hurt feelings with my siblings when they found out I was the one who was the executor of the estate. If there was ever any kind of strained relationship before this happened, this just magnified that tension.

Even though I was executor, I hired an attorney to make sure everything was distributed equally to all of us. The last thing I wanted was for any of my siblings to think that I was leaving them out of anything that was coming to them.

By sunshined — On Jul 06, 2012

@LisaLou - You are right when you say that the share and share alike term isn't always as easy as it sounds like it should be.

When my grandpa remarried later in life after his first wife died, they kept their assets separate. He wanted to make sure all of his assets went equally to his 6 kids when he passed away.

He owned a lot of farm ground and when he died, each child received their share of this land. One of the brothers was already farming the land, and it became kind of a hassle for everyone involved.

Some of the kids wanted to keep their share of the land, and others wanted to sell it. This could have easily split up the family if they didn't choose to get along.

Even though you may have every intention of your estate being distributed in a share and share alike fashion, it may not always be done very easily.

By LisaLou — On Jul 05, 2012

I think many parents want a share and share alike clause in their will or trust, but it seems like it doesn't always happen that easily. I know many situations where a family ended up being divided because of hurt feelings.

I know many items have sentimental value to a lot of people, but when they are the cause of damaged relationships, I always wonder if it is worth it.

I imagine that attorneys who handle will and trust documents have some very interesting stories to tell of what happens to families when it comes time to distribute the assets.

By John57 — On Jul 05, 2012

When both of my parents passed away, settling their estate was pretty easy. I have two siblings, and we all knew how their will was written ahead of time.

They wanted their estate to equally be split among the three of us. Even though they probably didn't specifically know the share and share alike legal definition, it was easy for them to determine how they wanted their will set up.

This ended up being an easy estate to settle, and it was just a matter of time before everything was finalized. We are thankful there was never any problem between our parents and each other. I know this isn't always the case in many situations.

Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

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