Legal Definitions - vertical equality

Vertical equality, in the context of distributing an estate (a person's money, property, and other assets after their death), is a principle that ensures each distinct line of descent from the deceased (typically originating from their children) ultimately receives an equal share of the estate. This means that regardless of how many individuals are in a particular family branch, the total portion allocated to that child's family line will be the same as for other child's family lines. While estate distributions can sometimes be "per capita" (meaning equally among individuals), vertical equality focuses on achieving equal treatment for these larger family lines.

• Example 1: Ensuring Equal Family Shares in a Will

  A grandmother passes away, leaving an estate to be divided among her descendants. She had two children, Sarah and Tom. Sarah has three children (grandchildren S1, S2, S3), and Tom has one child (grandchild T1). The grandmother's will specifies that her estate should be distributed "per stirpes," a method designed to achieve vertical equality. This means the estate is first divided into two equal shares: one for Sarah's line and one for Tom's line.

  If Sarah has predeceased the grandmother, her 1/2 share would be divided equally among her three children (S1, S2, S3), so each receives 1/6 of the estate. Tom, if alive, would receive his 1/2 share. If Tom has also predeceased, his 1/2 share would go to his child (T1). In this scenario, the total share received by Sarah's family line (Sarah and her descendants) is 1/2, and the total share received by Tom's family line (Tom and his descendants) is also 1/2. This demonstrates vertical equality because each child's family branch ultimately receives an equivalent portion of the inheritance, ensuring fairness between the lines of descent.

• Example 2: When Vertical Equality is Not Achieved

  A wealthy individual's will states that their estate should be divided "per capita" among all their living grandchildren. The individual had two children: Mark, who has two children (grandchildren M1, M2), and Nancy, who has five children (grandchildren N1, N2, N3, N4, N5). Assuming Mark and Nancy have predeceased, the estate is divided equally among the seven grandchildren. Each grandchild receives 1/7 of the estate.

  In this distribution, Mark's family line (M1 and M2) collectively receives 2/7 of the estate, while Nancy's family line (N1, N2, N3, N4, N5) collectively receives 5/7 of the estate. This outcome does not achieve vertical equality because the total shares received by Mark's family line and Nancy's family line are unequal. This example highlights that while a pure "per capita" distribution ensures horizontal equality (all individuals at that generational level get the same share), it often sacrifices vertical equality by not treating each family line equally.

• Example 3: Trust Distribution Prioritizing Family Lines

  A parent establishes a trust for their two adult children, Alex and Beth, and their future descendants. The trust document specifies that upon the parent's death, the trust assets should be managed to ensure "vertical equality" in distribution to Alex's family line and Beth's family line. Alex has one child, while Beth has three children.

  The trust ensures that the total benefit (whether through direct distributions or future inheritance) allocated to Alex's family line (Alex and his child) is equivalent to the total benefit allocated to Beth's family line (Beth and her three children). For instance, if the trust eventually distributes its principal, it might be divided 50% to Alex's line and 50% to Beth's line, regardless of the number of individuals in each line at the time of distribution. This illustrates vertical equality by prioritizing the equal treatment of the two family branches over equal individual shares.