In what situation does per stirpes inheritance apply?

Per stirpes inheritance applies in scenarios where branches of a family receive equal shares of an estate. This method of distribution is specifically designed to ensure that if a beneficiary in a particular branch of the family has passed away, their share will be equally distributed among their children or descendants. This method respects the line of descent, allowing for representation in inheritance and ensuring that branches of the family are treated equally in terms of their entitlement to the estate.

In this context, when a testator specifies a per stirpes distribution, it clearly indicates the intention to divide the estate among different family branches rather than just segmenting it evenly among living beneficiaries. Each branch stands to gain a share of the estate, and if one member of a branch has died, the share they would have received is instead allocated to their descendants, maintaining balance across the family tree.

This understanding highlights the important nuances of inheritance law, as it emphasizes considerations such as family lines and generational distribution. The other options do not capture the essence of how per stirpes operates, focusing instead on equal shares among living descendants, pre-deceased beneficiaries without branch consideration, or issues related to the liquidation of assets, none of which specifically relate to the principle of per stirpes inheritance.