Inheritance

The Meaning and Influence of Inheritance

Inheritance goes beyond the economics facets of the transfer itself to encompassing the social and moral dimensions of financial gift giving. It has long been recognized that inheritance plays a highly significant role in the means for reproducing the social system. Family inheritance, in particular, defines inter- and intrasocial relationships. The parent–child bond is a primordial one, and the giving and receiving of material gifts between these two generations embodies the very essence of the relationship.

In recent years, the topic of inheritance has taken on new meaning in social discourses on aging within numerous disciplines in the social and behavioral sciences. Financial gerontologists, taking cues from anthropologists, are giving the issue particular attention owing to a confluence of social, psychological, economic, and health-care consequences of inheritance on one’s legacy and on meeting societal needs. Inheritance and inter vivos transfers influence what the younger generation expects to receive from the older generation to build that younger generation’s future. Understanding the moral dimensions of giving across generations has important consequences for family life in general and for the support of adult [Page 1149]children and their elderly parents as they grow older.

Increasing life expectancy has expanded the leisure phase of life and created new imperatives and new norms for retirement security, as well as opportunities to pass on assets to the next generation. In the United States, and in other developed nations, the oldest-old adults are at highest risk of economic, physical, and cognitive dependency. The long-protracted period of aging will no doubt alter the meaning and salience of gifts passed on to adult children, many of whom themselves are on the cusp of deep old age.

For those who inherit money or property from parents, relatives, or nonkin, the bequest can profoundly alter their financial situation. Even relatively modest amounts of money above and beyond what one earns can affect one’s financial situation measurably. The ability to give to a child is a reflection of an elderly parent’s own success. Whether embracing this perspective or disdaining it, on balance, gifts of equity from parents, either housing or money, can especially improve the lives and opportunities of multiple generations.

Yet clearly, the last few decades of the life span bring an entirely new set of issues for older adults to confront, including adult children who require some kind of continued support. The cost of providing financial support for grown children may be high, however, and threaten both the standard of living of elderly parents after retirement from active work and their intentions to leave an inheritance.

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