The Probability of Receiving an Equal Bequest

Abstract: Economists have for a long time tried to explain the motivations behind bequests, why they exist and how they are divided. In Sweden, most bequests are equally divided, which raises the question of what motivates this decision even if there is a will written. This study aims to empirically examine if the Swedish decedents divide their bequests to make up for economic differences among their heirs. Using a linear probability model, I attempt to determine if the probability to divide a bequest equally is affected by the difference in siblings’ lifetime labor income, lifetime individual wealth, and lifetime household wealth. I find that economic differences may explain the probability of equal division of bequest when the estate is divided between two siblings. For three or four siblings, the economic differences may not explain the probability of equal bequest; instead, the probability is better explained by the age of the heir and the decedent.