BEQUEST MOTIVE Meaning and
Definition
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The bequest motive is a concept commonly used in economics and finance to describe an individual's desire to leave a financial legacy or inheritance to their descendants or chosen beneficiaries after their death. It refers to the motivation or inclination of some individuals to preserve and transfer their wealth from one generation to the next. The bequest motive is driven by several factors, including a sense of duty, familial obligations, or the desire to benefit future generations.
From an economic viewpoint, the bequest motive is considered an important component in the decision-making process regarding one's savings and consumption patterns. Individuals with a strong bequest motive tend to save a larger portion of their income, allocate their resources towards long-term investments, and exhibit a lower propensity to consume. This is because they prioritize the accumulation of wealth and the opportunity to leave a substantial inheritance for their loved ones.
The bequest motive can also impact economic outcomes at a societal level. It can influence the distribution of wealth and intergenerational transfers, potentially perpetuating inequality across different social groups. Moreover, the bequest motive can have implications for public policy, as governments may introduce estate taxes or other regulations to ensure a fair distribution of wealth and limit the concentration of resources within a few privileged families.
In summary, the bequest motive refers to the inherent desire of individuals to bequeath their wealth to future generations, guided by factors such as family ties, financial resources, and a sense of responsibility.
Etymology of BEQUEST MOTIVE
The word "bequest" originated from the Old English term "be- + cwestan" which literally meant "say or declare formally" or "stating a will or testament". The word "motive" came from the Old French word "motif" and Latin word "motivus" which both referred to something that moves or incites.
When combined, "bequest motive" refers to the underlying reason or motivation that drives someone to include a particular bequest or provision in their will or testament.
