TY  - JOUR
AU  - Hurd,Michael
AU  - Smith,James P.
TI  - Expected Bequests and Their Distribution
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9142
PY  - 2002
Y2  - September 2002
UR  - http://www.nber.org/papers/w9142
L1  - http://www.nber.org/papers/w9142.pdf
N1  - Author contact info:
Michael D. Hurd
RAND Corporation
1776 Main Street
Santa Monica, CA 90407
Tel: 310/451-6945
Fax: 310/451-6923
E-Mail: mhurd@rand.org

James P. Smith
RAND Corporation
1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
Tel: 310-451-6925
E-Mail: smith@rand.org
AB  - Based on a sample of actual bequests that is population-representative and on the subjective probability of bequests, we estimate the distribution of bequests that the older population will make.  We find that the distribution is highly skewed, so that the typical baby-boom person will receive a very modest inheritance.  This is partly due to the skewed distribution of wealth and partly due to the tendency of the wealthy to have fewer children.  But it is also due to anticipated dissaving: we estimate that households in the age band 70-74 will bequeath just 39% of their wealth, consuming the rest before they die.
ER  -