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Inter‐vivos Transfers and Exchange

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  • Edward C. Norton
  • Courtney Harold Van Houtven

Abstract

Most parents divide their bequests equally among their children, whereas inter‐vivos transfers are usually unequal. We propose that exchange is better for inducing inter‐vivos transfers than bequests. Inter‐vivos transfers can be adjusted quickly to the amount of care, are less costly than writing a will, and can be kept secret from other family members and the public. The results from national longitudinal data show that, as expected, if a parent gives any inter‐vivos transfers, she is more likely to give to children who provide informal care. Informal care has no effect on the equality of intended bequests.

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  • Edward C. Norton & Courtney Harold Van Houtven, 2006. "Inter‐vivos Transfers and Exchange," Southern Economic Journal, John Wiley & Sons, vol. 73(1), pages 157-172, July.
    • Handle: RePEc:wly:soecon:v:73:y:2006:i:1:p:157-172
    DOI: 10.1002/j.2325-8012.2006.tb00763.x
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    References listed on IDEAS

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    1. Costa-Font, Joan & Jiménez-Martín, Sergi & Vilaplana-Prieto, Cristina, 2022. "Do Public Caregiving Subsidies and Supports affect the Provision of Care and Transfers?," Journal of Health Economics, Elsevier, vol. 84(C).
    2. Olena Nizalova, 2012. "The Wage Elasticity of Informal Care Supply: Evidence from the Health and Retirement Study," Southern Economic Journal, John Wiley & Sons, vol. 79(2), pages 350-366, October.

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