The Age of Inheritance: How Demographic Change Shapes How Often, from Whom, and when We Inherit

Albert Esteve , Centre d'Estudis Demogràfics / Universitat Autònoma de Barcelona
Diederik Boertien, Centre d Estudis Demografics (CED)
Daniel Devolder, Centre d'Estudis Demogràfics / Universitat Autònoma de Barcelona

Intuitively, declining fertility and rising life expectancy suggest that a decreasing number of potential heirs will inherit from an expanding pool of testators. Yet, we still lack concrete measures of how much the likelihood of receiving an inheritance has grown over the course of our lives. Using microsimulation and data on mortality and fertility for Spanish cohorts born between 1720 and 2020, this article models the probability of inheriting, the familial origins of these inheritances (i.e. parents, grandparents, siblings, uncles, and others), as well as the average age and its dispersion at the time of inheritance. The data show unequivocally that the synthetic inheritance index has tripled between cohorts born from 1720 to 2020. While inheritability has risen, the average age at which inheritances are received has also increased—from 35 to 60 years. We discuss the implications and broader consequences of these demographic shifts.

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 Presented in Session 9. Intergenerational Solidarity, Transfers and Responsibilities