What happens to a per capita distribution if a beneficiary predeceases the estate holder?

In a per capita distribution, each beneficiary receives an equal share of the estate. When a beneficiary predeceases the estate holder, their share is not simply lost or given to the state; instead, it is redistributed among the remaining beneficiaries. This means that the deceased beneficiary's portion is divided equally among those who are still alive and entitled to a share. This approach ensures that the deceased beneficiary’s rightful portion contributes to the total equity shared among the surviving beneficiaries, rather than allowing it to be absorbed or unallocated.

The other options misrepresent the mechanics of per capita distribution. For instance, dividing the share equally among all beneficiaries or sending it to the state only occurs under specific circumstances not applicable here. Similarly, compensating a deceased beneficiary's family would typically fall outside the standard rules of distribution in a per capita context, unless the estate plan explicitly states otherwise.