Medical Spending, Bequests, and Asset Dynamics Around the Time of Death

John Jones, Mariacristina De Nardi, Eric French, Rory McGee and Rachel Rodgers

No 26879, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using data from the Health and Retirement Survey, we document the changes in assets that occur before a person's death. Applying an event study approach, we find that during the 6 years preceding their deaths, the assets of single decedents decline, relative to those of similar single survivors, by an additional $20,000 on average. Over the same time span, the assets of couples who lose a spouse fall, relative to those of similar surviving couples, by an additional $90,000 on average. Households experiencing a death also incur higher out-of-pocket medical spending and other end-of-life expenses. This elevated spending is sufficient to explain (in accounting terms) the asset declines observed for singles but falls short of explaining the declines observed for couples. Bequests from the dying spouse to non-spousal heirs such as children are more than sufficient to explain the remainder.

JEL-codes: D1 D12 D14 (search for similar items in EconPapers)
Date: 2020-03
New Economics Papers: this item is included in nep-age and nep-hea
Note: EH PE
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Citations: View citations in EconPapers (10)

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Journal Article: Medical Spending, Bequests, and Asset Dynamics around the Time of Death (2020)
Journal Article: Medical Spending, Bequests, and Asset Dynamics around the Time of Death (2020)
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