Vanessa's policy on her life names her three brothers as beneficiaries to share equally in the proceeds. If any of the brothers predeceases Vanessa, that brother's share will be passed on to his children. Vanessa's beneficiary designation is known as

Rationale

Vanessa's beneficiary designation is known as per stirpes.

This term refers to a method of distributing an estate where the share of a deceased beneficiary is passed down to their descendants, ensuring that the intended lineage continues to receive their appropriate portion. In this case, if any of Vanessa's brothers passes away, their share goes to their children, exemplifying the per stirpes designation.

A (per stirpes.) CORRECT

This option accurately describes the scenario where a deceased beneficiary's share is transferred to their children. In Vanessa's policy, this ensures that her brothers’ portions will be inherited by their descendants if they predecease her, maintaining the equal distribution intended.

B (tertiary.) YOUR ANSWER

The term "tertiary" typically refers to a third level or rank but does not apply to beneficiary designations in estate planning. It does not convey any specific meaning regarding the distribution of a deceased beneficiary's share or how heirs are determined, making it an incorrect choice in this context.

C (irrevocable.) YOUR ANSWER

An irrevocable designation means that the beneficiary cannot be changed without the consent of the beneficiary. While this term relates to beneficiary designations, it does not address how the proceeds are shared among beneficiaries or their heirs, thus failing to describe Vanessa's situation accurately.

D (per capita.) YOUR ANSWER

"Per capita" refers to distribution among living beneficiaries equally, without passing shares down to descendants of deceased beneficiaries. In contrast to the per stirpes designation, this method would not allow the children of a predeceased brother to inherit his share, making this option incorrect.

Conclusion

Vanessa's life insurance policy reflects a per stirpes designation, which appropriately ensures that if any of her brothers pass away, their children will receive their share of the proceeds. This method preserves her intention of equal distribution among family members across generations, distinguishing it clearly from other beneficiary designation types.

Vanessa's policy on her life names her three brothers as beneficiaries to share equally in the proceeds. If any of the brothers predeceases Vanessa, that brother's share will be passed on to his children. Vanessa's beneficiary designation is known as

Vanessa's beneficiary designation is known as per stirpes.

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