Abstract

Joint with Eduard Suari-Andreu, Rob Alessie and Raun van Ooijen

In this study we examine the importance of estate planning and inter-vivos transfers towards the end of life. To that end, we use administrative records on all deaths taking place in the Netherlands between 2006 and 2013. We link these to wealth and income tax records and the hospital discharge register. These unique data allow us to distinguish between sudden unanticipated deaths and non-sudden anticipated deaths. Our results show that non-sudden deaths are associated with significantly less financial wealth at the time of death. We interpret this as inter-vivos transfers that result from estate planning towards the end of life. We find significant effects not only at the top of the wealth distribution but along the entire upper half of the distribution. Diseases with a relatively low survival rate that do not affect cognitive abilities appear as the most likely to trigger estate planning.