What Do Bequests Left by Couples with a Surviving Member Tell Us About Bequest Motives?

This paper provides the first systematic analysis of bequests left by married couples when the first member of the couple dies. I document that married couples frequently leave bequests to individuals other than the surviving spouse and that these “early” bequests can be large in magnitude. Because these bequests involve a direct tradeoff with the resources available to the surviving spouse, I argue that they provide a novel vantage point from which to assess theories about the motives behind intergenerational transfers. While I find no evidence for an altruistic bequest motive, I do observe patterns consistent with bequests motivated by both exchange and evolutionary psychology. The results also suggest that an important function of early bequests is to channel resources to a decedent’s own children in families with stepchildren. In addition, I find remarkable similarities between early bequests and the “traditional” bequests left when the last member of the household dies, suggesting that both actions may reflect a consistent set of underlying preferences