Per Capita

• "Per capita" is a Latin term that means "by the head." It's useful as a distribution scheme or as a way to determine averages. In the legal sense, per capita shares typically refer to an heir's inheritance. Per capita is also used to describe other matters, such as the average carbon emissions for a given population or a given population's standard of living. To calculate per capita shares, you need to know the total number of people and the total amount of resources being divided.
  
  

Wills and Estates

• There are two main distribution schemes for inheritance matters: per capita and per stirpes. "Per stirpes" is another Latin term, meaning "by the root." Under per stirpes distribution, the shares aren't determined based on the total number of heirs, but rather each heir has a specific percentage; if that heir dies, the percentage is split between that heir's living children or, if there are no living children, divided and added to the remaining heirs' shares. Under per capita distribution, the shares are split evenly based on the total number of living heirs.
  
  

Illustration

• Assume the decedent died and left $100,000 to his three children, John, Emily and Nick. The will states that the money is to be divided "per capita." Each heir receives an equal share, or about $33,333. Next assume that John died before the decedent and left two children of his own behind, and that the decedent did not change his estate plan upon John's death. Per capita takes into consideration the two new heirs, who are the decedent's grandchildren --- the money is divided four ways, and each heir receives $25,000. Under per stirpes distribution, if John died before the decedent and left two children behind, his $33,333 share is divided between his own two children --- who each take $16,666 --- while Emily and Nick each keep their $33,333.
  
  

Other Matters

• Per capita shares may also describe other matters. For example, an article in "Adbusters" suggests that each person should have a cap on their carbon emissions: According to the article "The Per Capita Principle," each person's per capita carbon emissions share should be 2.8 tons per year. Per capita may also describe a country's standard of living. By dividing the total national income of a country by its total population, economists are able to get a rough idea about the country's living standards, according to the BusinessDictionary.com.