Intergenerational Transfers, Aging & Health Dynamics

Jinkook Lee, Ohio State University

The aims of this project are: to identify the patterns of inter vivo transfers over time and to examine the impacts of health on wealth transfers. Using all the available waves of Health and Retirement Study, the trajectories of inter vivo transfers are identified across different wealth, age, and cohort groups. Interesting non-linear relationships with age, health and wealth status were found: the wealth transfer peaked between the ages 60 to 66. As the self-reported health status declines, the probability of transferring wealth to children declines, but only until one reports poor health. As health condition worsens to be extremely poor, the probability of transferring wealth increases. As household wealth increases, the probability of transferring wealth also increases except for the bottom quartile of wealth group. The second quartile is less likely to make inter vivo transfers than the bottom quartile. These results indicate a likelihood of Medicaid Estate Planning.