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Leaving Legacies and Liabilities: The Distribution of Wealth at Death

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  • Disslbacher, Franziska
  • Rapp, Severin

Abstract

This paper leverages novel administrative data on terminal wealth in Vienna to show that Gini indices of wealth inequality at death exceed unity, with 20-30% of decedents leaving behind debt. We analyze the drivers of this distribution, finding that life-cycle effects have limited explanatory power. In contrast, bequest motives are associated with higher wealth, and a marginal increase in the share of decedents with bequest motives reduces inequality. Homeownership also correlates with higher wealth (the reverse is true for care-home residency), though housing wealth does not benefit the bottom of the distribution across districts. Finally, means-tested long-term care transfers significantly amplify terminal wealth inequality. (Stone Center on Socio-Economic Inequality Working Paper)

Suggested Citation

  • Disslbacher, Franziska & Rapp, Severin, 2024. "Leaving Legacies and Liabilities: The Distribution of Wealth at Death," SocArXiv z3wfv, Center for Open Science.
    • Handle: RePEc:osf:socarx:z3wfv
    DOI: 10.31219/osf.io/z3wfv
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