"Per stirpes" and "lapse" are two different ways of dividing an inheritance among family members when someone passes away. Let's break down the differences:

Per Stirpes:

Imagine you have a grandparent who wants to distribute their assets to their children (your parent and your aunts/uncles) and their grandchildren (you and your cousins).

With "per stirpes," the assets are divided along family lines. Each branch of the family (your parent's generation) gets an equal share, and if a person in that branch has passed away, their share goes to their children (the grandchildren). The fractional shares adjust to split the deceased aunt's 1/3 of the estate between her two surviving children. They would now be 1/3 – 1/3 – 1/6 – 1/6

Per Stirpes Example:

If your grandparent has three children (your parent and two aunts), and one of those aunts has passed away but has two children (your cousins), "per stirpes" would ensure that each branch of the family (your parent's branch and the deceased aunt's branch) gets an equal share. So, it's divided among four shares—one for each of the surviving children (your parent and surviving aunt) and one for each of the two cousins from the deceased aunt.

Lapse:

With "lapse," the assets are divided equally among all the beneficiaries, regardless of which branch of the family they belong to. In this case, everyone in the same generation (your parent, aunts/uncles, and cousins) receives an equal share.

Lapse Example:

Using the same family scenario, "lapse" would distribute the assets equally among all the living beneficiaries. So, if there are three children and only two are living, they would all receive an equal share. Instead of 1/3 - 1/3 - 1/3 the fractional shares of the estate would adjust to 1/2 – 1/2.

In summary, "per stirpes" divides assets based on family branches, with the idea that each branch should receive an equal portion. "Lapse" divides assets equally among all beneficiaries, regardless of their family branch. The choice between these methods can have different outcomes in inheritance, so it's important to understand how the distribution will work in your specific situation.