In this study we investigate the role of health status as a predictor of wealth transfers between households (inter-vivos transfers). To that end, we use high-quality administrative data for the whole population of the Netherlands. Using data on hospital intakes, we construct a measure of health shocks based on the existing literature. We use this measure to carry out an event study that exploits the randomness in the exact timing of the shock. Our results show a significant and positive increase in the probability of giving during the years following a health shock. Further analysis indicates that this result does not reflect the presence of an exchange motive for giving,
and that it does point to the use of inter-vivos transfers as an instrument to avoid inheritance taxes. Our results have relevant implications for social policies that redistribute wealth across individuals as well as for the design of gift and inheritance tax schedules.