# Personal Wealth, 2001 > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3A91bd3c5b8ad5cbab ## Record - **Collection:** Agency decision - **Document type:** Agency decision ## Text Personal Wealth, 2001 by Barry W. Johnson and Brian G. Raub T 120 he distribution and composition of personal wealth in the United States are topics of great interest among researchers and policy planners. Unfortunately, these issues are difficult to research, since there are few sources of data on the wealth holdings of the general population, especially the very rich. Federal estate tax returns (Form 706) provide a unique source from which to study the nation’s wealthiest individuals. The estate tax return contains a complete listing of a decedent’s assets and debts, as well as a demographic profile of the decedent and information on the costs of administering the estate. A decedent’s estate has up to 9 months to file an estate tax return, but use of a 6-month extension is common. It is, therefore, necessary to combine returns filed over a number of calendar years in order to capture data representative of all estate tax decedents dying in a single year. The wealth of living individuals can be estimated from Federal estate tax return data using the estate multiplier technique. The fundamental assumption underlying this methodology is that estate tax returns filed for decedents who died in a particular year represent a random sample, designated by death, of the living population in that year. Estimates of the wealth holdings of the living population are derived by applying a multiplier, based on appropriate mortality rates, to this sample. (See the Appendix to this article for a more complete discussion of the estate multiplier technique.) Valuation Measures These estimates apply to individual holdings of $675,000 or more in gross estate, the Federal estate tax filing threshold in effect for 2001 U.S. decedents. Gross estate is a Federal estate tax concept of wealth that does not conform to usual definitions of wealth, primarily because it includes components that are not traditionally considered part of a living individual’s portfolio and because there are features of the tax code that allow certain real property to be specially valued when used in farming or running a 120 Barry W. Johnson is Chief, Special Studies Special Projects Section, and Brian G. Raub is an economist with the same section. This article was prepared under the direction of Janet McCubbin, Chief, Special Studies Branch. business. Therefore, three measures of wealth are used in this article: gross assets (or gross estate), total assets, and net worth. Gross assets reflects the gross value of all assets owned by a decedent, including the full face value of life insurance, reduced by the value of any policy loans, but excluding any reduction for other indebtedness. This measure defines the individuals included in the top wealth holder group. Total assets is a lower wealth value but is still essentially a gross measure. It differs from gross assets in that the cash, or equity, value of life insurance (i.e., the value of insurance immediately before the policyholder’s death) replaces the “at death” value of life insurance included in gross assets, and incorporates other adjustments to compensate for special valuation provisions in the tax code [1]. Net worth is total assets minus debts. Top Wealth Holders, 2001 In 2001, there were an estimated 7.4 million adults, age 18 and older, with gross assets of $675,000 or more (see Table 1). Combined, they owned almost $15.2 trillion in total assets. After accounting for over $1.3 trillion in debts and mortgages, this group had a total net worth of $13.8 trillion. Although these top wealth holders represented only 3.5 percent of the U.S. adult population, they held an estimated 32.7 percent of the total U.S. net worth in 2001 [2, 3]. There were nearly 4.0 million male top wealth holders in 2001, representing 53.7 percent of the top wealth holder population. These men had a combined net worth of $8.0 trillion, for an average net worth of nearly $2.0 million (see Table 2). About 73,000 of these men had a net worth of $10 million or more. A large majority, 66.4 percent, of male top wealth holders were married, while 16.3 percent were single and 8.7 percent were widowed (see Figure A). About 8.5 percent of wealthy males were divorced or separated. There were over 3.4 million female top wealth holders, comprising 46.3 percent of the total. The combined net worth of these women was $5.8 trillion, while their average net worth was $1.71 million (see Table 3). About 50,000 female top wealth holders in 2001 had a net worth of $10 million or more. In contrast to their male counterparts, less than half, 49.0 percent, of all female top wealth holders were married, while 26.0 percent were widowed, a much Personal Wealth, 2001 Figure A Top Wealth Holders: Marital Status, by Sex, 2001 Marital status Males Percentage (1) Females Percentage (2) (3) (4) Total....................... 3,953,728 100.0 3,403,522 100.0 Married........................ 2,627,212 66.4 1,668,808 49.0 Widowed..................... 343,942 8.7 884,677 26.0 Single.......................... 645,570 16.3 487,786 14.3 Other ¹......................... 337,004 8.5 362,251 10.6 for male and female wealth holders is very similar for most points, except for those above the 95th percentile, where male net worth values dominate. It is these larger values that account for the much larger difference in the average net worth between the sexes. While not included in Figure B, it is interesting to note that the left tail of the net worth distribution for males dips much lower (larger negative values) for points below the 1st percentile than for females. Portfolio Composition ¹ Includes individuals who were separated or divorced and those for whom marital status was not determinable. NOTE: Detail may not add to totals because of rounding. The portfolio composition of top wealth holders in 2001 varied substantially by gender and wealth. As shown in Figure C, men with less than $1 million in net worth devoted the largest percentages of their portfolios to personal residences, 20.7 percent, and retirement assets, 18.3 percent [4]. Stock in publicly held corporations, other real estate, and cash holdings also represented significant portions of these individuals’ portfolios. For males with at least $1 million but less than $10 million in net worth, personal residences comprised a substantially smaller portion of their total portfolio, at 10.4 percent. Publicly traded stock comprised the single largest component, 19.7 percent, while retirement assets were the second largest component, 16.5 higher percentage than for men. About 14.3 percent of wealthy females were single, while 10.6 percent were divorced or separated. While the average net worth of female wealth holders was more than 15 percent lower than that of males, averages can be very sensitive to outliers. When significant outliers exist, the median is often a better measure of the center of a distribution. The median net worth for male wealth holders was approximately $978,000, while the median value for females was nearly the same at almost $955,000. In fact, Figure B shows that the distribution of wealth Figure B Top Wealth Holders, by Sex: Net Worth Distribution, 1st-99th Percentiles, 2001 Net worth (in millions) 18 16 14 Males 12 Females 10 8 6 4 2 0 0 10 20 30 40 50 60 70 80 90 100 Percentile 121 Personal Wealth, 2001 Figure C Male Top Wealth Holders: Selected Assets and Debts as a Percentage of Total Assets, by Size of Net Worth, 2001 Percentage 35 30 25 20 15 10 5 0 Personal residences Other real estate Closely held Publicly stock traded stock Other financial assets ¹ Cash and cash management accounts Retirement assets ² Business assets ³ Debts and mortgages Size of net worth 122 Under $1,000,000 $1,000,000 under $10,000,000 $10,000,000 or more ¹ Includes all government bonds, corporate bonds, bonds issued by foreign governments, and diversified mutual funds. ² Includes individual retirement accounts, annuities, and self-employed retirement or Keogh plans. ³ Includes noncorporate businesses, farms, and limited partnerships. 122 percent. The proportion of these individuals’ portfolios comprised of stock in closely held companies [5] and other financial assets (such as government bonds, corporate bonds, and foreign bonds) was markedly higher than the corresponding proportion for men with less than $1 million in net worth. For the wealthiest males, those with net worth of $10 million or more, financial assets were the dominant portfolio component. Holdings in the stock of publicly traded corporations, 31.5 percent, and closely traded companies, 15.0 percent, combined for nearly one half of their portfolios. The wealthiest men also devoted a substantially larger proportion of their portfolios to business assets (including noncorporate businesses, farm assets, and limited partnerships), 17.2 percent, and other financial assets, 12.0 percent, than their peers in the lower wealth classes. In contrast, personal residences, 3.0 percent, and retire- ment assets, 3.7 percent, represented only small components of their portfolios. For female top wealth holders, the shift in portfolio composition as net worth increased followed a pattern similar to that for their male counterparts (see Figure D). However, there were several significant differences in the makeup of portfolios held by male and female top wealth holders. In each wealth class, women held larger proportions of their assets in personal residences and other real estate and smaller proportions in retirement and business assets than men. The most notable difference between the asset mix of female and male top wealth holders was the importance of closely held stock in their respective portfolios. Closely held stock comprised only 1.3 percent of the portfolios of women with net worth of less than $1 million, compared to nearly 3.9 percent for men in the same wealth class. Likewise, women Personal Wealth, 2001 Figure D Female Top Wealth Holders: Selected Assets and Debts as a Percentage of Total Assets, by Size of Net Worth, 2001 Percentage 35 30 25 20 15 10 5 0 Personal residences Other real estate Closely held Publicly stock traded stock Other financial assets ¹ Cash and Retirement cash assets ² management accounts Business assets ³ Debts and mortgages Size of net worth Under $1,000,000 $1,000,000 under $10,000,000 $10,000,000 or more ¹ Includes all government bonds, corporate bonds, bonds issued by foreign governments, and diversified mutual funds. ² Includes individual retirement accounts, annuities, and self-employed retirement or Keogh plans. ³ Includes noncorporate businesses, farms, and limited partnerships. with net worth of $1 million but less than $10 million held 3.7 percent of their assets in closely held stock, less than half the corresponding proportion for men in this group. This proportion shifted sharply upward, to 14.4 percent, for women with a net worth of $10 million or more and nearly equals the 15.0 percent of their wealthiest male counterparts. Male top wealth holders in all wealth classes had a higher ratio of debts and mortgages to total assets than their female peers. Women, in aggregate, had a debt ratio (debts divided by total assets) of 7.3 percent, while the comparable figure for men was 10.0 percent. Men with a net worth of less than $1 million had by far the highest debt ratio, 20.8 percent. Age The average age of male top wealth holders in 2001 was 55.7 years, 3.6 years younger than the average age of female top wealth holders. Figure E shows that the $1.7 million average net worth of males under 50 was markedly lower than that for men in any other age group. For men between 50 and 85 years of age, average net worth remained relatively steady in a range between $2.1 million and $2.3 million. Males aged 85 and older were wealthier than men in any other age group, with an average net worth of $2.6 million. The average net worth of females under 50 was over $1.4 million. Although the average for women aged 50 to 65 was significantly higher at $1.9 million, as age increased beyond this point, there was only scant variation in average net worth. Women aged 75 to 85 actually had a lower average net worth, $1.8 million, than their counterparts between age 50 and 75. Females 85 and older had an average net worth of about $1.9 million, nearly identical to the average for those in the 50-under-65 age group. 123 Personal Wealth, 2001 Figure E All Top Wealth Holders: Average and Median Net Worth, by Sex and Age, 2001 Millions of dollars 3.0 2.5 Male Average 2.0 Female Average 1.5 Male Median 1.0 Female Median 0.5 0.0 Under 50 50 under 65 65 under 75 124 124 75 under 85 85 and older Age The median net worth of top wealth holders reveals a very different picture. For each age and sex combination, median net worth was substantially lower than average net worth. For both males and females, median wealth for those in the 50-under-65 age group increased significantly from the median for those under 50, but age had very little effect on the median net worth of wealthy individuals over 50. Although the average net worth of males was significantly higher than that of females in each age category, the median wealth of men and women was very similar regardless of age. These observations suggest that a limited number of high wealth males have a significant effect on the data. The effect is most striking for men aged 85 and older. While the median net worth of this group was virtually identical to that for the 75-under-85 age group, their average net worth was nearly one-fifth greater. Also interesting is the fact that women under age 50 had a higher median net worth than their male counterparts but a lower average net worth. While median net worth did not vary greatly across age groups or gender, especially for those over age 50, the data suggest that both age and gender are important determinants of portfolio composition. As shown in Figure F, for males in all three age groups depicted, stock held in public companies was dominant but varied substantially in the share it contributed to total assets. For males under age 50, publicly traded stock comprised 21.6 percent of total assets. Business assets made up the second-largest share of the total for these relatively young men, 12.1 percent, followed by the value of the personal residence, 11.8 percent. For men in the 50-under-65 age bracket, retirement assets made up the second largest share of total assets, 17.3 percent, not surprising for a group approaching traditional retirement age. Publicly traded stock accounted for 17.9 percent of total assets for this group, lower than the corresponding proportion for men under age 50, while stock in closely held companies comprised 11.8 percent. Personal Wealth, 2001 Figure F Male Top Wealth Holders: Selected Assets and Debts as a Percentage of Total Assets, by Age, 2001 Percentage 30 25 20 15 10 5 0 Personal residences Other real estate Closely held Publicly stock traded stock Other financial assets ¹ Under 50 50 under 65 Cash and cash management accounts Retirement assets ² Business assets ³ Debts and mortgages 65 and older ¹ Includes all government bonds, corporate bonds, bonds issued by foreign governments, and diversified mutual funds. ² Includes individual retirement accounts, annuities, and self-employed retirement or Keogh plans. ³ Includes noncorporate businesses, farms, and limited partnerships. For males age 65 and older, publicly traded stock made up 25.9 percent of total assets. Men in this age group devoted the highest proportion of any age group to other financial assets, where tax-exempt bonds issued by State and local governments dominated. Closely held stock and personal residences accounted for the lowest proportion of total assets for this group, which may reflect both lifestyle changes expected for individuals in the post-retirement phase of life. About 68.3 percent of men aged 65 and older owned a personal residence compared to 75.4 percent of men younger than 65. A similar pattern can be seen for closely held stock, as 15.0 percent of men aged 65 and older owned these assets, significantly less than the 23.4 percent ownership rate of men younger than 65. For wealthy females, publicly traded stock was also the dominant asset in each age bracket (see Figure G). Women under 50 held 24.1 percent of their portfolios in such stocks, along with another 6.1 percent in the stock of closely held companies. The personal residence was the second largest asset component for women in this age group, 18.6 percent of total assets, followed by retirement assets. For women in the 50-under-65 age group, the personal residence was again the second largest portfolio component, with investment real estate making up a much larger share than in the portfolios held by younger women. The 50-under-65 age group also devoted the largest share of their portfolios to business assets and stock in closely held corporations among the groups depicted in Figure G. For women aged 65 and older, liquid assets, including publicly traded stock, cash accounts, and other financial assets, contribute substantially more to their portfolios than to the portfolios of women in the younger age 125 Personal Wealth, 2001 Figure G Female Top Wealth Holders: Selected Assets and Debts as a Percentage of Total Assets, by Age, 2001 Percentage 30 25 20 15 10 5 0 Personal residences Other real estate Closely held Publicly stock traded stock 126 Under 50 Other financial assets ¹ Cash and cash management accounts 50 under 65 Retirement assets ² Business assets ³ Debts and mortgages 65 and older ¹ Includes all government bonds, corporate bonds, bonds issued by foreign governments and diversified mutual funds. ² Includes individual retirement accounts, annuities, and self-employed retirement or Keogh plans. ³ Includes non-corporate businesses, farms, and limited partnerships. groups. In contrast, the personal residence comprised only 11.0 percent of the portfolios held by women aged 65 or older, while retirement assets accounted for only 8.3 percent for women in this oldest age bracket. For all top wealth holders, the debt ratio decreased steadily with age (see Figure H), declining from 15.5 percent for wealthy individuals under age 50 to 1.7 percent for their counterparts age 85 and older. In each age category, women had a lower debt ratio than men, although these differences may not be statistically significant. 126 State Data Figure I presents the States with the largest number of resident millionaires [6]. California, the U.S. State with the largest overall population [7], also had the largest number of millionaires with about 572,000. New York had the second-largest number of millionaires, 317,000, followed by Florida and Illinois with 249,000 and 185,000, respectively. Another way to look at the concentration of millionaires by State is to focus on the number of millionaires as a percentage of the adult population, shown in Figure J. This approach eliminates distor- Personal Wealth, 2001 Figure H All Top Wealth Holders: Debt and Mortgages as a Percentage of Total Assets, by Sex and Age, 2001 Percentage 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Under 50 50 under 65 65 under 75 75 under 85 85 and older Age Males Females Figure I Figure J States with the Largest Number of Resident Millionaires, 2001 ¹ States with the Highest Concentration of Resident Millionaires, 2001 ¹ [Numbers are in thousands] [Numbers are in thousands] State Number of millionaires Total adult population Millionaires as a percentage of adult population (3) State Number of millionaires Total adult population Millionaires as a percentage of adult population (2) (3) (1) (2) California........................... 572 25,176 2.3 Connecticut........................ 83 2,594 3.2 New York........................... 317 14,452 2.2 New Jersey........................ 178 6,398 2.8 Florida............................... 249 12,566 2.0 District of Columbia............ 11 458 2.4 Illinois................................ 185 9,274 2.0 California............................ 572 25,176 2.3 Texas................................. 182 15,297 1.2 New York........................... 317 14,452 2.2 New Jersey........................ 178 6,398 2.8 Massachusetts................... 105 4,921 2.1 Pennsylvania..................... 135 9,418 1.4 Illinois................................. 185 9,274 2.0 2.0 (1) Ohio................................... 114 8,540 1.3 Florida................................ 249 12,566 Massachusetts................... 105 4,921 2.1 Wyoming............................ 7 370 1.9 Virginia.............................. 94 5,426 1.7 Delaware............................ 11 605 1.8 ¹ Millionaires are defined as individuals with net worth of $1 million or more. ² Statistics on U.S. Population, by State, for 2001 were obtained from the U.S. Bureau of the Census, "Population by State," published online at: ¹ Millionaires are defined as individuals with net worth of $1 million or more. ² Statistics on U.S. Population, by State, for 2001 were obtained from the U.S. Bureau of the Census, "Population by State," published online at: http://www.census.gov/popest/states. http://www.census.gov/popest/states. 127 Personal Wealth, 2001 tions caused by the widely varied populations of the States. Using this measure, Connecticut ranked first with the highest number of millionaires per capita. Two of the smallest States in the country by population, Wyoming and Delaware, as well as the District of Columbia, were in the top ten by concentration of millionaires. Six States--California, Florida, Illinois, Massachusetts, New Jersey, and New York--ranked in the top ten in both the number of resident millionaires and millionaires per capita. Millionaires, 1998-2001 The number of adult millionaires, defined as those with net worth of $1 million or more in real terms, increased 17.8 percent between 1998 and 2001, while the average net worth of millionaires increased 16.1 percent [8]. Figure K shows the percentage growth in the number of millionaires by net worth class between 1998 and 2001. The number of millionaires in each wealth class increased significantly between 1998 and 2001, a period generally marked by strong economic expansion until the onset of a recession in March 2001 [9], which was in turn worsened by the economic impact of the September 11 terrorist attacks. The number of millionaires with net worth between $1 million and $5 million grew by 15.4 percent between 1998 and 2001, while the number of millionaires in the higher wealth classes increased more rapidly, 41.3 percent for those with net worth between $5 million and $10 million, and 46.4 percent for those with net worth of $10 million or more. By comparison, the total U.S. population grew by 5.9 percent during this period. Males made up a majority of millionaires in both years (54.2 percent and 54.9 percent), although, on average, they accounted for only 48.2 percent of the adult U.S. population during this period. Figure L displays changes in the age composition of male millionaires in 1998 and 2001. The percentage of male millionaires under age 50 increased markedly Figure K 128 Percentage Growth in Number of Millionaires and Total U.S. Population, 1998-2001 Percentage 50 45 40 35 30 25 20 15 10 5 0 Total U.S. population $1 million under $5 million $5 million under $10 million Net worth class (constant 2001 dollars) 128 $10 million or more Personal Wealth, 2001 Figure L Percentage of Male Millionaires, by Age, 1998 and 2001 Percentage 40 35 30 25 20 15 10 5 0 Under 50 50 under 65 65 under 75 75 under 85 85 and older Age 1998 2001 over this period, from 23.2 percent in 1998 to 29.8 percent in 2001. Conversely, the percentage of male millionaires between ages 50 and 75 declined during this period, while the percentage of male millionaires in the oldest age brackets was virtually unchanged. These patterns suggest that most of the new men who joined the millionaire population between 1998 and 2001 were under age 50. Females accounted for 45.8 percent of the millionaire population in 1998 and 45.1 percent in 2001. Analysis of the age composition of female millionaires in 1998 and 2001 (Figure M) reveals similarities to the age composition of male millionaires. Women in the youngest age brackets, through age 65, represented larger percentages of the overall female millionaire population in 2001 than in 1998, while the percentage of women between age 65 and 85 decreased. Between 1998 and 2001, the percentage of millionaire women who were aged 85 and older was unchanged. in the portfolio allocations of men and women. Throughout this period, female millionaires held a higher percentage of their portfolios in real estate than their male counterparts, while the men devoted substantially more to retirement assets (see Figures N and O). Beyond these differences, however, the portfolio composition of male and female millionaires showed similar changes between 1998 and 2001. Real estate made up a higher percentage of both men’s and women’s portfolios in 2001 than in 1998. This is consistent with a 25.9 percent increase in housing prices from the first quarter of 1998 to the fourth quarter of 2001 [10]. Conversely, for both sexes, stock and other financial assets comprised a substantially smaller portion of the portfolio in 2001 than in 1998. From the beginning of 1998 through the end of 2001, the S&P 500 stock index returned a more modest 18 percent, including a 13 percent decline during 2001 [11]. Portfolio Composition for Millionaires Concentration Estimates Looking at the asset makeup of millionaires’ portfolios in 1998 and 2001 reveals significant differences The share of U.S. wealth held by the top wealth holders has long been a topic of interest for research- 129 Personal Wealth, 2001 Figure M Percentage of Female Millionaires, by Age, 1998 and 2001 Percentage 35 30 25 20 15 10 5 0 Under 50 50 under 65 65 under 75 75 under 85 85 and older Age 1998 130 2001 Figure N Male Millionaires: Selected Assets as a Percentage of Total Assets, 1998 and 2001 Percentage 45 40 35 30 25 20 15 10 5 0 All real estate All stock ¹ Other financial assets ² 1998 130 Retirement assets ³ 2001 ¹ Includes publicly traded as well as closely held stock. ² Includes individual retirement accounts, annuities, and self-employed retirement or Keogh plans. ³ Includes noncorporate businesses, farms, and limited partnerships. Cash and cash management accounts Personal Wealth, 2001 Figure O Female Millionaires: Selected Assets as a Percentage of Total Assets, 1998 and 2001 Percentage 45 40 35 30 25 20 15 10 5 0 All real estate All stock ¹ Other financial assets ² 1998 Retirement assets ³ Cash and cash management accounts 2001 ¹ Includes publicly traded as well as closely held stock. ² Includes individual retirement accounts, annuities, and self-employed retirement or Keogh plans. ³ Includes noncorporate businesses, farms, and limited partnerships. ers and the general public. One way of looking at year-to-year changes in the distribution of wealth is to examine the share of total U.S. wealth held by a constant percentage of the population. Figure P displays the percentages of total U.S. wealth held by the top 1.0 percent and the top 0.5 percent of the population between 1989 and 2001 [12]. In 2001, 1.0 percent of the U.S. adult population was approximately 2.1 million individuals. These individuals owned approximately 22.3 percent of total U.S. individual wealth, a 1.0 percent decrease since 1998 but virtually identical to the shares of wealth held in 1995 and 1992. A similar pattern was evident in the share of wealth held by the nearly 1.1 million individuals who made up the top 0.5 percent of the U.S. adult population in 2001. They held about 17.9 percent of the Nation’s net worth in 2001, down slightly from 18.1 percent in 1998 and just above the shares held in 1995 and 1992. The slight interperiod variations shown in Figure O are well within the sampling error of these estimates. Overall, these results suggest that the share of wealth held by the very wealthiest Americans has been nearly constant over the 12-year period [13]. Summary There were more than 7.3 million individuals in the United States with gross assets of $675,000 or more in 2001. These individuals represented about 3.5 percent of the total U.S. adult population. Top wealth holders had a combined net worth of $13.8 trillion, or 32.7 percent of total U.S. net worth. Almost 4.0 million, or 53.7 percent, of these wealthy individuals were male, and 3.4 million were female. Although the median net worth of male and female top wealth holders was similar, men had a significantly higher average net worth, reflecting the impact of a relatively few very wealthy men at the top end of the wealth distribution. The age, gender, and relative wealth of top wealth holders impacted the composition of their portfolios. Women’s portfolios contained a greater proportion of real estate and stock in public corporations than those of men. Conversely, men’s portfo- 131 Personal Wealth, 2001 Figure P Percentage of Total U.S. Net Worth Held by the Top 1 Percent and 0.5 Percent of the U.S. Population, 1989-2001 Percentage 25 Top 1 percent 20 15 Top 0.5 percent 10 5 0 1989 132 132 1992 1995 lios were made up of proportionately more closely held stock, business assets, and retirement assets. The value of the personal residence made up smaller percentages in the portfolios of older top wealth holders than in portfolios held by younger individuals in the same wealth classes. Men in each wealth and age class had a higher ratio of debts to total assets than their female counterparts. There was a significant increase in the number of U.S. citizens with net worth of $1.0 million or more between 1998 and 2001. While the number of millionaires in each wealth class grew more rapidly than the overall U.S. population during this period, the growth rate in the number of millionaires with net worth of less than $5 million was slower than the rate for millionaires with net worth of $5 million or more. In 2001, California remained the State with the largest number of millionaires, while Connecticut was the State with the greatest per capita concentration of millionaires. Estimates of the amount of wealth held by the top 1.0 percent and 0.5 percent of the U.S. population suggest that the percentage of overall U.S. wealth held by these groups has not changed significantly between 1989 and 2001. 1998 2001 Data Sources and Limitations Statistics of Income collects data from an annual sample of Federal estate tax returns that are used primarily for policy and budget purposes. The sample follows a 3-year cycle that is designed mainly to accommodate year-of-death estimates, with each study concentrating on decedents who died in the first year, the focus year, of the 3-year cycle. The annual samples are also adequate for producing filing-year estimates. Year-of-death estimates are desirable, because filing extensions and other filing delays mean that returns filed in any given calendar year may represent decedents who died in many different years. Thus, estate tax return data for a single filing year may reflect different economic and tax law conditions. By concentrating on a single year of death, these limitations can be overcome, making it possible to study the data in the context of a single time period. Returns are selected using a stratified random sample with three stratifying variables. The stratifying variables are: year of death (focus year versus nonfocus years), total gross estate plus certain adjusted taxable gifts made during a decedent’s lifetime, Personal Wealth, 2001 and age at death. The gross estate plus gifts variable is divided into five categories: $675,000 under $1 million, $1 million under $2.5 million, $2.5 million under $5 million, $5 million under $10 million, and $10 million or more. Age at death is also divided into five categories: under 40, 40 under 50, 50 under 65, 65 under 75, and 75 and older. Sample rates vary from 3 percent to 100 percent, with over half the strata selected with certainty, i.e., at the 100-percent rate. SOI has combined Federal estate tax returns filed in 2001, 2002, and 2003 to produce the estimates of wealth for 2001 presented here. One of the strengths of estimates derived from SOI samples of estate tax returns is the large sample on which the estimates are based. The 2001 sample includes more than 25,800 returns [14]. While the sample size and richness of available data make the estimation techniques used in this study attractive, there are limitations to be noted. First, and most important, estate tax returns provide a presumably random sample, stratified by age, not of the total population, but of living persons with gross assets at or above the estate tax filing threshold. Sample rates are approximated by appropriate mortality rates; however, determining appropriate mortality rates for use in calculating sample weights is by no means a straightforward exercise. The Appendix to this article discusses the estate multiplier technique and recent innovations in calculating sample weights for SOI’s personal wealth estimates. Second, while estate tax returns are generally prepared by professionals and are, therefore, likely to be more accurate in detail than survey responses, the values reported are used to compute tax liability so that there is a natural tendency for the values to be somewhat conservative. This is especially true for hard-to-value assets, such as businesses and certain types of real estate. It should also be noted that the estate tax data used for these estimates are preaudit figures. A Statistics of Income (SOI) study, based on the results of IRS audits of estate tax returns filed in 1992, estimated that detected undervaluation of assets was about 1.2 percent of total asset holdings [15]. In addition, it is common to claim substantial discounts when valuing ownership interests of less than 50 percent in small companies, partnerships, and other, nonliquid assets. Increasingly, estate planning techniques are used to fracture ownership interests in a variety of business and financial assets to take advantage of these discounts. Third, while estate tax returns report assets that are owned outright, total wealth might ideally include wealth to which a person has an income interest but not necessarily actual title. Examples of the latter include defined-benefit pension plans and Social Security benefits. Finally, the wealth of some individuals near death may differ somewhat from that of the general population in the same age cohort. For some, portfolios may have been altered or simplified to ensure the uninterrupted continuation of an ongoing business or to simplify the task of executing the estate. For others, wealth will have been reduced through expenses related to a final illness. In many cases, effective estate planning may also have reduced the value of the estate reportable for tax purposes. Appendix: The Estate Multiplier Technique The estate multiplier technique assumes that estate tax returns, taken as a whole, represent a random sample of the living wealthy population and thus provide a means of producing reasonable estimates of personal wealth [16]. Estimates of the wealth holdings of the living population are derived by applying a multiplier, based on appropriate mortality rates, to this sample. The multiplier is equivalent to a sampling weight where the probabilities of selection include the probability of being a decedent and also that of being included in the Statistics of Income sample of estate tax returns. Mathematically, this is represented as: MULT= 1 / (p • r ) where p = probability of selection to the estate tax sample, and r = mortality rate appropriate to wealthy individuals. Some smoothing of the multipliers was employed to constrain both tails of the net worth distribution. The more difficult computation is determining the probability of being a decedent. Mortality rates for the general population, by age and sex, are available from the National Center for Health Statistics. However, there is much evidence that the wealthy have mortality rates significantly lower than those of the entire population. Research has demonstrated that “individuals who are economically or socially better 133 Personal Wealth, 2001 134 off also live longer, on average, and are healthier” [17]. Factors such as access to better health services, better diet and nutrition, and fewer workrelated risks seem to contribute to this phenomenon. If mortality and wealth are inversely related, then mortality rates unadjusted for wealth level will be too low and, thus, undervalue wealth. Therefore, it is important to determine a mortality rate appropriate to the wealthy decedents in the estate tax return sample. There have been a considerable number of attempts to quantify differences between the mortality of the general population and that of the very wealthy, looking at factors such as education, income, and occupation. In years past, SOI calculated mortality rates for its Personal Weath estimates by adjusting mortality rates for the entire population using mortality differentials derived using the National Longitudinal Mortality Study (NLMS) sponsored by the National Institutes of Health. However, the most recent publicly available microdata from the NLMS are from 1995. In order to incorporate mortality information that was more contemporary with the SOI data, the 2001 estate multipliers were calculated using mortality rates for holders of large dollar value annuity policies obtained from the Society of Actuaries (SOA). This data source has several advantages beyond being more recently updated. First, annual annuitant mortality rates are available. Second, use of this source is consistent with other recent academic research within and outside the IRS. For consistency, estimates for 1998 used in this article were recalculated using the annuitant mortality rates. Therefore, they differ somewhat from 1998 estimates previously published by SOI. The most significant difference between the two weighting methodologies is that, relative to employing the annuitant mortality data, using the NLMS data tended to slightly underestimate the proportion of wealthy women in the top wealth holder population. Notes and References 134 [1] Estimates of the equity value of life insurance included in total assets were approximated, based on the face value reported on Federal estate tax returns and on the decedent’s age. A ratio of the equity value to the face value was developed, using data from wealthy respondents to the 1989, 1992, and 1995 Surveys of Consumer Finances. A simple regression was used to estimate the ratio of the equity value to the face value as a function of age in the SCF and then applied to the Statistics of Income data. In addition, the Internal Revenue Code (IRC) section 2032 allows executors to value property as of the date 6 months after a decedent’s death (or on the date property is distributed, sold, exchanged, or otherwise disposed of, within 6 months of death) in cases where the value of the gross estate decreased. Values presented in this article are as reported for the decedent’s date of death. Finally, under IRC section 2032A, executors are allowed to value certain qualified real property used in a farm or other business based on its business (qualified) use rather than at a higher fair market value under certain circumstances. For this article, fair market values are substituted for the qualified values used to determine estate tax liability. [2] Population estimates were obtained from the Statistical Abstract of the United States, U.S. Bureau of the Census, Washington, DC, various years, Table entitled “Resident Population by Sex and Age.” [3] Estimate of the total net worth of the United States is taken from household estimates derived from the Board of Governers of the Federal Reserve System’s Survey of Consumer Finances (SCF), found in Kennickell, Arthur B. (2001), “A Rolling Tide: Changes in the Distribution of Wealth in the U.S., 1989-2001,” Board of Governors of the Federal Reserve System working paper, p. 21. [4] Retirement assets considered part of portfolio wealth in these estimates include contribution type plans such as Individual Retirement Arrangements (IRAs), 401K, and Keogh accounts, as well as annuities. [5] A closely held company is a corporation whose stock is not publicly traded, usually a familyowned enterprise. [6] While the size of the underlying sample of estate tax returns makes estimates of wealth derived using the estate multiplier technique fairly robust, Personal Wealth, 2001 estimates of wealth by State can be subject to significant year-to-year fluctuations. This is especially true for individuals at the extreme tail of the net worth distribution and for States with relatively small decedent populations. [7] Statistics on U.S. population, by State, for 2001 were obtained from the U.S. Bureau of the Census, “Population by State,” published online at: http://www.census.gov/popest/states. [8] Estimates for 1998 have been converted to constant 2001 dollars for consistency, using the GDP chain-type price index. See the Federal Reserve Economic Data Web site at: http://research.stlouisfed.org/fred2. [9] Data on business cycle expansions and contractions were obtained from the National Bureau of Economic Research (NBER). See http:// www.nber.org/cycles/cyclesmain.html. [10] Change in housing prices was calculated using the Office of Federal Housing Enterprise Oversight (OFHEO) House Price Index. See http://www.ofheo.gov. [11] Data on returns of the S&P 500 index were obtained from the Standard & Poor Web site. See http://www2.standardandpoors.com. [12] See Footnote 2. [13] These results are consistent with those derived from the Federal Reserve Board’s Survey of Consumer Finances. See Kennickell (2001). [14] Although the overall sample of estate tax returns is large, the number of decedents who were young (less than 40) or extremely wealthy (gross assets of $5 million or more) in any given year varies considerably and is small in comparison to their number in the living population. Because of this, the resulting estimates of wealth for these two categories of living individuals would be subject to significant fluctuations from period to period. To reduce this variance, the sample is “smoothed” by including all returns for young or wealthy decedents filed during the 3-year sample period without regard to their years of death. These segments of the sample are then poststratified and reweighted to represent the true decedent population for the year of interest. This technique reduces the effect of outliers on estimates of personal wealth. [15] Eller, Martha Britton (2001), “Audit Revaluation of Federal Estate Tax Returns,” Internal Revenue Service Statistics of Income Bulletin, Winter 2000-2001, Washington, DC. [16] See Atkinson, A.B. and Harrison, A.J. (1978), Distribution of Personal Wealth in Britain, for a thorough discussion of the estate multiplier technique. [17] See Menchik, Paul (1991), “Economic Status as a Determinant of Mortality Among Nonwhite and White Older Males: or, Does Poverty Kill?” Institute for Research on Poverty, Discussion Paper Number 93891. 135 Personal Wealth, 2001 Table 1.--Personal Wealth, 2001: Top Wealth Holders with Gross Assets of $675,000 or More, Type of Property by Size of Net Worth [All figures are estimates based on samples--numbers are in thousands, money amounts are in millions of dollars] Total assets Size of net worth Number (1) Number (2) (3) Amount Number (4) (5) Personal residence Amount Number (6) (7) Amount (8) 7,357 15,181,904 5,683 1,348,314 7,357 13,833,590 5,486 1,790,585 Size of net worth: Negative net worth ¹.......................... $1 under $600,000............................ $600,000 under $1,000,000.............. $1,000,000 under $2,500,000........... $2,500,000 under $5,000,000........... $5,000,000 under $10,000,000......... $10,000,000 under $20,000,000....... $20,000,000 or more......................... 32 1,509 2,307 2,569 574 243 77 46 34,901 980,726 2,080,347 4,127,949 2,106,827 1,771,700 1,128,101 2,951,352 32 1,343 1,657 1,896 451 196 66 42 59,218 299,959 178,962 290,366 145,890 104,753 74,128 195,037 32 1,509 2,307 2,569 574 243 77 46 -24,318 680,767 1,901,385 3,837,583 1,960,937 1,666,947 1,053,973 2,756,315 20 1,182 1,654 1,904 438 187 62 39 6,897 282,507 411,849 585,453 211,564 143,179 74,680 74,457 Other real estate Number (9) Total...................................................... Size of net worth: Negative net worth ¹.......................... $1 under $600,000............................ $600,000 under $1,000,000.............. $1,000,000 under $2,500,000........... $2,500,000 under $5,000,000........... $5,000,000 under $10,000,000......... $10,000,000 under $20,000,000....... $20,000,000 or more......................... Size of net worth Closely held stock Amount Number (10) (11) Publicly traded stock Amount Number (12) (13) State and local government bonds Amount Number (14) (15) Amount (16) 3,453 1,483,808 1,179 1,228,657 5,475 3,492,512 2,073 877,867 15 621 970 1,267 339 150 56 34 4,116 140,049 221,197 451,974 259,276 175,206 96,322 135,669 8 182 217 448 166 93 39 27 2,209 29,826 49,671 203,715 165,506 173,792 154,327 449,612 16 900 1,700 2,042 486 216 71 43 8,058 68,119 333,887 814,725 487,587 450,143 300,377 1,029,616 1 99 586 925 257 133 46 27 155 4,623 65,654 191,683 133,125 165,256 99,247 218,124 Federal savings bonds Other Federal bonds Corporate and foreign bonds Bond funds Number Amount Number Amount Number Amount Number (17) (18) (19) (20) (21) (22) (23) Amount (24) Total...................................................... 867 34,918 1,068 237,996 1,155 123,750 377 28,251 Size of net worth: Negative net worth ¹.......................... $1 under $600,000............................ $600,000 under $1,000,000.............. $1,000,000 under $2,500,000........... $2,500,000 under $5,000,000........... $5,000,000 under $10,000,000......... $10,000,000 under $20,000,000....... $20,000,000 or more......................... 2 189 312 287 53 17 5 2 1 1,425 11,985 17,810 2,566 663 214 254 -65 349 466 109 49 16 14 -2,992 28,393 60,430 28,846 21,077 18,637 77,621 2 91 386 469 120 50 21 15 515 2,944 20,311 40,260 20,599 11,775 7,609 19,737 -32 138 153 35 12 4 3 -714 6,589 11,924 3,782 2,358 844 2,041 Footnotes at end of table. 136 Amount Net worth Total...................................................... Size of net worth 136 Debts and mortgages Personal Wealth, 2001 Table 1.--Personal Wealth, 2001: Top Wealth Holders with Gross Assets of $675,000 or More, Type of Property by Size of Net Worth--Continued [All figures are estimates based on samples--numbers are in thousands, money amounts are in millions of dollars] Size of net worth Diversified mutual funds ² Cash Cash management accounts Mortgages and notes Number Amount Number Amount Number Amount Number (25) (26) (27) (28) (29) (30) (31) Amount (32) Total...................................................... 1,616 141,541 6,936 836,805 4,656 583,257 1,455 379,574 Size of net worth: Negative net worth ¹.......................... $1 under $600,000............................ $600,000 under $1,000,000.............. $1,000,000 under $2,500,000........... $2,500,000 under $5,000,000........... $5,000,000 under $10,000,000......... $10,000,000 under $20,000,000....... $20,000,000 or more......................... 3 236 544 586 144 66 23 15 12 7,597 25,201 38,836 22,725 8,833 5,366 32,973 24 1,426 2,172 2,418 548 229 74 45 1,698 52,750 185,816 278,841 108,247 67,677 46,625 95,150 10 684 1,457 1,772 432 194 66 40 844 19,482 87,089 170,679 86,697 79,643 49,364 89,459 4 201 384 558 169 80 35 25 783 18,876 47,220 106,889 52,727 60,807 31,962 60,310 Size of net worth Cash value life insurance Number (33) Total...................................................... Size of net worth: Negative net worth ¹.......................... $1 under $600,000............................ $600,000 under $1,000,000.............. $1,000,000 under $2,500,000........... $2,500,000 under $5,000,000........... $5,000,000 under $10,000,000......... $10,000,000 under $20,000,000....... $20,000,000 or more......................... Noncorporate business assets Amount Number (34) (35) Farm assets Amount Number (36) (37) Limited partnerships Amount Number (38) (39) Amount (40) 4,936 257,998 1,052 646,274 726 356,921 747 408,577 30 1,354 1,472 1,547 324 139 42 27 3,086 76,095 53,199 76,310 24,754 14,170 4,925 5,459 6 189 205 368 135 86 34 28 1,837 20,768 33,456 99,258 84,715 84,869 87,094 234,278 4 86 211 304 69 33 10 9 1,964 25,522 65,491 128,713 45,387 34,624 15,628 39,592 1 56 148 300 117 66 32 26 7 2,428 10,696 43,421 38,668 55,530 40,503 217,325 Size of net worth Total.......................................................................................................... Size of net worth: Negative net worth ¹............................................................................... $1 under $600,000................................................................................. $600,000 under $1,000,000................................................................... $1,000,000 under $2,500,000................................................................ $2,500,000 under $5,000,000................................................................ $5,000,000 under $10,000,000.............................................................. $10,000,000 under $20,000,000............................................................ $20,000,000 or more............................................................................. Retirement assets ³ Art Other assets Number Amount Number Amount Number (41) (42) (43) (44) (45) Amount (46) 5,541 1,802,138 235 60,915 6,549 409,565 13 1,204 1,729 1,915 414 178 55 33 931 184,939 358,632 697,096 273,472 160,929 66,207 59,934 1 25 35 81 39 24 15 15 32 329 886 3,483 7,176 3,553 4,772 40,683 26 1,366 2,002 2,288 524 225 74 45 1,754 38,743 63,127 106,453 49,412 57,617 23,400 69,059 ¹ Includes individuals with zero net worth. ² Mutual funds with a single investment objective are grouped with similar direct investments in this table. ³ Includes individual retirement accounts, annuities, and self-employed retirement or Keogh plans. 137 Personal Wealth, 2001 Table 2.--Personal Wealth, 2001: Male Top Wealth Holders with Gross Assets of $675,000 or More, Type of Property by Size of Net Worth [All figures are estimates based on samples--numbers are in thousands, money amounts are in millions of dollars] Total assets Size of net worth Total........................................................ Size of net worth: Negative net worth ¹............................ $1 under $600,000.............................. $600,000 under $1,000,000................ $1,000,000 under $2,500,000............. $2,500,000 under $5,000,000............. $5,000,000 under $10,000,000........... $10,000,000 under $20,000,000......... $20,000,000 or more........................... Size of net worth Personal residence Amount Number Amount Number Amount Number (1) (2) (3) (4) (5) (6) (7) Amount (8) 3,953 8,890,276 3,050 890,738 3,953 7,999,538 2,893 887,979 26 919 1,083 1,363 333 155 42 31 32,272 562,062 984,350 2,243,244 1,222,038 1,148,462 624,240 2,073,608 26 815 758 993 268 125 36 28 56,118 178,495 93,780 189,812 92,767 84,312 43,765 151,689 26 919 1,083 1,363 333 155 42 31 -23,846 383,567 890,570 2,053,432 1,129,271 1,064,150 580,475 1,921,920 17 715 746 989 251 118 32 26 5,907 158,339 162,180 284,976 110,947 83,846 30,216 51,568 Other real estate (9) Closely held stock Amount Number (10) (11) Publicly traded stock Amount Number (12) (13) State and local government bonds Amount Number (14) (15) Amount (16) Total........................................................ 1,895 848,748 822 883,579 2,822 1,946,329 947 451,288 Size of net worth: Negative net worth ¹............................ $1 under $600,000.............................. $600,000 under $1,000,000................ $1,000,000 under $2,500,000............. $2,500,000 under $5,000,000............. $5,000,000 under $10,000,000........... $10,000,000 under $20,000,000......... $20,000,000 or more........................... 10 344 501 683 202 100 31 23 3,400 74,712 114,128 247,600 143,503 115,265 50,809 99,331 8 139 142 305 114 72 23 19 2,209 23,875 35,262 145,384 121,794 150,390 77,985 326,681 14 517 759 1,046 281 137 39 30 8,026 38,808 141,310 385,646 253,438 269,144 159,053 690,904 1 49 243 405 135 73 23 18 155 2,334 25,164 80,165 59,062 87,486 52,029 144,893 Size of net worth Total........................................................ Size of net worth: Negative net worth ¹............................ $1 under $600,000.............................. $600,000 under $1,000,000................ $1,000,000 under $2,500,000............. $2,500,000 under $5,000,000............. $5,000,000 under $10,000,000........... $10,000,000 under $20,000,000......... $20,000,000 or more........................... Footnotes at end of table. 138 Net worth Number Number 138 Debts and mortgages Federal savings bonds Other Federal bonds Corporate and foreign bonds Bond funds Number Amount Number Amount Number Amount Number (17) (18) (19) (20) (21) (22) (23) Amount (24) 471 14,227 475 135,232 531 61,662 174 12,541 1 135 138 153 31 9 3 2 (²) 653 4,788 6,351 1,741 360 128 206 -30 152 189 59 27 8 9 -498 12,022 25,036 14,818 12,554 11,457 58,848 2 47 139 227 64 31 10 11 515 1,563 5,912 17,669 8,117 6,325 4,272 17,288 -19 56 70 18 8 1 3 -270 2,241 4,947 2,014 1,877 319 873 Personal Wealth, 2001 Table 2.--Personal Wealth, 2001: Male Top Wealth Holders with Gross Assets of $675,000 or More, Type of Property by Size of Net Worth--Continued [All figures are estimates based on samples--numbers are in thousands, money amounts are in millions of dollars] Size of net worth Diversified mutual funds ³ Cash management accounts Mortgages and notes Number Amount Number Amount Number Amount Number (25) (26) (27) (28) (29) (30) (31) 796 78,572 3,744 485,476 2,337 320,619 842 215,185 3 147 199 298 83 44 13 10 12 4,385 10,152 18,898 7,752 5,693 2,417 29,261 21 875 1,020 1,286 321 150 41 30 1,670 32,038 79,495 146,168 69,611 49,352 30,554 76,588 10 368 620 912 243 122 36 27 843 8,551 36,773 77,647 48,475 50,212 29,452 68,665 4 120 209 317 100 56 19 17 783 9,795 19,629 60,888 31,307 35,377 16,859 40,546 Total........................................................ Size of net worth: Negative net worth ¹............................ $1 under $600,000.............................. $600,000 under $1,000,000................ $1,000,000 under $2,500,000............. $2,500,000 under $5,000,000............. $5,000,000 under $10,000,000........... $10,000,000 under $20,000,000......... $20,000,000 or more........................... Size of net worth Cash Cash value life insurance Number (33) Noncorporate business assets Amount Number (34) (35) Farm assets Amount Number (36) (37) Amount (32) Limited partnerships Amount Number (38) (39) Amount (40) Total........................................................ 3,072 198,673 698 440,794 442 238,942 418 281,092 Size of net worth: Negative net worth ¹............................ $1 under $600,000.............................. $600,000 under $1,000,000................ $1,000,000 under $2,500,000............. $2,500,000 under $5,000,000............. $5,000,000 under $10,000,000........... $10,000,000 under $20,000,000......... $20,000,000 or more........................... 24 864 786 997 237 112 30 23 2,787 55,230 35,977 61,317 21,615 13,016 4,352 4,380 5 148 128 229 90 59 19 21 1,813 16,429 20,334 65,926 44,834 57,511 54,237 179,711 3 63 130 173 40 21 6 6 1,549 19,939 41,324 81,308 31,289 18,926 10,590 34,016 1 25 82 155 72 45 18 19 7 1,595 6,288 26,433 26,556 35,791 22,873 161,549 Size of net worth Retirement assets Number (41) Total............................................................................................................. Size of net worth: Negative net worth ¹................................................................................. $1 under $600,000................................................................................... $600,000 under $1,000,000..................................................................... $1,000,000 under $2,500,000.................................................................. $2,500,000 under $5,000,000.................................................................. $5,000,000 under $10,000,000................................................................ $10,000,000 under $20,000,000.............................................................. $20,000,000 or more................................................................................ 4 Art Amount Number (42) (43) Other assets Amount Number Amount (44) (45) 3,091 1,147,780 110 21,083 3,516 220,478 (46) 11 728 843 1,071 258 123 33 24 910 88,220 199,488 446,225 193,665 120,919 52,954 45,400 1 10 21 32 21 11 6 8 32 132 742 1,389 5,770 1,036 2,269 9,713 20 830 942 1,212 300 143 39 30 1,653 24,695 31,141 59,273 25,730 33,383 11,414 33,189 ¹ Includes individuals with zero net worth. ² Less than $500,000. ³ Mutual funds with a single investment objective are grouped with similar direct investments in this table. 4 Includes individual retirement accounts, annuities, and self-employed retirement or Keogh plans. 139 Personal Wealth, 2001 Table 3.--Personal Wealth, 2001: Female Top Wealth Holders with Gross Assets of $675,000 or More, Type of Property by Size of Net Worth [All figures are estimates based on samples--numbers are in thousands, money amounts are in millions of dollars] Total assets Size of net worth Total........................................................ Size of net worth: Negative net worth ¹............................ $1 under $600,000.............................. $600,000 under $1,000,000................ $1,000,000 under $2,500,000............. $2,500,000 under $5,000,000............. $5,000,000 under $10,000,000........... $10,000,000 under $20,000,000......... $20,000,000 or more........................... Size of net worth Personal residence Amount Number Amount Number Amount Number (1) (2) (3) (4) (5) (6) (7) Amount (8) 3,404 6,291,628 2,633 457,576 3,404 5,834,052 2,592 902,607 6 589 1,224 1,206 240 88 35 15 2,628 418,664 1,095,997 1,884,705 884,789 623,239 503,862 877,743 6 528 899 903 183 71 30 14 3,100 121,464 85,182 100,554 53,123 20,441 30,363 43,349 6 589 1,224 1,206 240 88 35 15 -472 297,201 1,010,815 1,784,151 831,666 602,798 473,498 834,395 3 467 908 916 186 69 30 13 990 124,168 249,669 300,477 100,617 59,333 44,464 22,889 Other real estate (9) Closely held stock Amount Number (10) (11) Publicly traded stock Amount Number (12) (13) State and local government bonds Amount Number (14) (15) Amount (16) Total........................................................ 1,558 635,060 357 345,078 2,653 1,546,183 1,127 426,579 Size of net worth: Negative net worth ¹............................ $1 under $600,000.............................. $600,000 under $1,000,000................ $1,000,000 under $2,500,000............. $2,500,000 under $5,000,000............. $5,000,000 under $10,000,000........... $10,000,000 under $20,000,000......... $20,000,000 or more........................... 5 276 469 584 137 50 25 12 716 65,337 107,069 204,374 115,773 59,941 45,513 36,338 -43 74 143 52 22 16 8 -5,951 14,409 58,332 43,712 23,402 76,342 122,931 2 384 940 996 205 80 32 14 32 29,311 192,577 429,079 234,149 180,999 141,324 338,713 -50 343 520 122 59 23 10 -2,289 40,490 111,518 74,063 77,769 47,218 73,231 Size of net worth Total........................................................ Size of net worth: Negative net worth ¹............................ $1 under $600,000.............................. $600,000 under $1,000,000................ $1,000,000 under $2,500,000............. $2,500,000 under $5,000,000............. $5,000,000 under $10,000,000........... $10,000,000 under $20,000,000......... $20,000,000 or more........................... Footnotes at end of table. 140 Net worth Number Number 140 Debts and mortgages Federal savings bonds Other Federal bonds Corporate and foreign bonds Bond funds Number Amount Number Amount Number Amount Number (17) (18) (19) (20) (21) (22) (23) Amount (24) 396 20,691 593 102,764 624 62,088 203 15,711 1 54 173 135 22 8 2 1 1 772 7,198 11,459 825 303 85 47 -34 197 278 50 21 8 5 -2,493 16,371 35,394 14,028 8,524 7,180 18,773 -44 247 242 56 19 11 5 -1,381 14,399 22,591 12,482 5,449 3,336 2,449 -13 82 84 17 4 2 1 -444 4,348 6,977 1,768 481 525 1,167 Personal Wealth, 2001 Table 3.--Personal Wealth, 2001: Female Top Wealth Holders with Gross Assets of $675,000 or More, Type of Property by Size of Net Worth--Continued [All figures are estimates based on samples--numbers are in thousands, money amounts are in millions of dollars] Size of net worth Diversified mutual funds ² Cash management accounts Mortgages and notes Number Amount Number Amount Number Amount Number (25) (26) (27) (28) (29) (30) (31) 820 62,969 3,193 351,329 2,320 262,638 613 164,389 -88 345 289 61 22 10 5 -3,212 15,048 19,937 14,972 3,140 2,948 3,712 3 551 1,152 1,132 227 80 34 15 28 20,713 106,321 132,673 38,635 18,325 16,071 18,563 1 317 836 860 189 72 31 13 1 10,931 50,316 93,032 38,222 29,431 19,912 20,793 -81 175 240 69 24 16 8 -9,081 27,591 46,001 21,419 25,430 15,103 19,764 Total........................................................ Size of net worth: Negative net worth ¹............................ $1 under $600,000.............................. $600,000 under $1,000,000................ $1,000,000 under $2,500,000............. $2,500,000 under $5,000,000............. $5,000,000 under $10,000,000........... $10,000,000 under $20,000,000......... $20,000,000 or more........................... Size of net worth Cash Cash value life insurance Number Noncorporate business assets Amount Number (35) Farm assets Amount Number (36) (37) Amount (32) Limited partnerships Amount Number (38) (39) Amount (33) (34) Total........................................................ 1,864 59,325 353 205,480 284 117,979 329 127,485 Size of net worth: Negative net worth ¹............................ $1 under $600,000.............................. $600,000 under $1,000,000................ $1,000,000 under $2,500,000............. $2,500,000 under $5,000,000............. $5,000,000 under $10,000,000........... $10,000,000 under $20,000,000......... $20,000,000 or more........................... 6 491 686 551 87 27 13 4 298 20,865 17,222 14,992 3,139 1,154 574 1,079 1 41 77 139 46 27 15 7 24 4,339 13,122 33,332 39,882 27,358 32,857 54,567 1 23 81 131 29 13 4 3 415 5,583 24,166 47,405 14,098 15,698 5,038 5,576 -31 66 145 45 21 14 7 -833 4,408 16,988 12,112 19,739 17,629 55,776 Size of net worth Retirement assets ³ Number (41) Total............................................................................................................. Size of net worth: Negative net worth ¹................................................................................. $1 under $600,000................................................................................... $600,000 under $1,000,000..................................................................... $1,000,000 under $2,500,000.................................................................. $2,500,000 under $5,000,000.................................................................. $5,000,000 under $10,000,000................................................................ $10,000,000 under $20,000,000.............................................................. $20,000,000 or more................................................................................ Art Amount Number (42) (43) (40) Other assets Amount Number Amount (44) (45) 2,450 654,358 125 39,832 3,033 189,086 (46) 2 476 886 844 156 55 22 8 21 96,719 159,144 250,872 79,807 40,009 13,253 14,534 -15 14 49 18 13 9 7 -197 144 2,094 1,406 2,518 2,503 30,970 6 536 1,060 1,076 224 82 34 15 102 14,048 31,985 47,180 23,682 24,234 11,986 35,870 ¹ Includes individuals with zero net worth. ² Mutual funds with a single investment objective are grouped with similar direct investments in this table. ³ Includes individual retirement accounts, annuities, and self-employed retirement or Keogh plans. 141 Personal Wealth, 2001 Table 4.--Personal Wealth 2001: Male Top Wealth Holders with Gross Assets of $675,000 or More, Type of Property, by Age [All figures are estimates based on samples--numbers are in thousands, money amounts are in thousands of dollars] Total assets Age Number (1) Debts and mortgages Amount Number (2) Net worth Amount Number Personal residence Amount Number (6) Amount (3) (4) (5) (7) (8) 3,953 8,890,276 3,050 890,738 3,954 7,999,538 2,893 887,979 Under 50......................................... 1,534 3,148,044 1,351 503,431 1,534 2,644,612 1,116 372,880 50 under 65..................................... 1,183 2,760,038 921 262,419 1,183 2,497,619 933 270,514 65 under 75..................................... 643 1,573,360 406 86,704 643 1,486,656 460 132,473 75 under 85..................................... 438 997,017 268 30,496 438 966,522 300 86,412 85 and older.................................... 155 411,817 103 7,688 155 404,129 84 25,700 Total................................................... Age Age Total................................................... Investment real estate Closely held stock Other stocks State and local bonds Number Amount Number Amount Number Amount Number (9) (10) (11) (12) (13) (14) (15) 1,895 848,748 822 883,579 2,822 1,946,329 Amount (16) 947 451,288 Age Under 50......................................... 619 259,990 356 337,051 1,040 680,832 208 146,040 50 under 65..................................... 656 307,553 281 326,319 866 493,987 248 105,095 65 under 75..................................... 369 174,543 124 135,458 456 323,478 197 70,267 75 under 85..................................... 193 83,033 49 70,736 336 265,432 204 82,826 85 and older.................................... 58 23,628 12 14,015 124 182,600 90 47,060 Age 142 Total................................................... Federal savings bonds Other Federal bonds Corporate and foreign bonds Bond funds Number Amount Number Amount Number Amount Number Amount (17) (18) (19) (20) (21) (22) (23) (24) 471 14,227 475 135,232 531 61,662 174 12,541 Age Under 50......................................... 156 1,299 121 47,445 124 16,566 50 5,299 50 under 65..................................... 148 3,271 123 32,854 143 17,769 48 2,795 65 under 75..................................... 81 3,855 93 17,730 119 12,282 31 1,638 75 under 85..................................... 64 4,001 100 26,946 103 10,602 32 1,854 85 and older.................................... 22 1,803 38 10,257 42 4,443 13 954 Footnotes at end of table. 142 Personal Wealth, 2001 Table 4.--Personal Wealth 2001: Male Top Wealth Holders with Gross Assets of $675,000 or More, Type of Property, by Age--Continued [All figures are estimates based on samples--numbers are in thousands, money amounts are in millions of dollars] Diversified mutual funds ¹ Age Total................................................... Cash Cash management accounts Mortgages and notes Number Amount Number Amount Number Amount Number (25) (26) (27) (28) (29) (30) (31) Amount (32) 796 78,572 3,744 485,476 2,337 320,619 842 215,185 Age Under 50......................................... 263 20,882 1,442 207,603 810 126,357 293 76,270 50 under 65..................................... 254 37,469 1,122 112,242 729 90,132 249 61,180 65 under 75..................................... 136 9,981 611 71,585 392 50,910 170 47,084 75 under 85..................................... 104 6,991 421 64,523 302 37,990 102 24,707 85 and older.................................... 39 3,249 148 29,523 104 15,231 28 5,944 Cash value life insurance Age Total................................................... Noncorporate business assets Farm assets Limited partnerships Number Amount Number Amount Number Amount Number Amount (33) (34) (35) (36) (37) (38) (39) (40) 3,072 198,673 698 440,794 442 238,942 418 281,092 Age Under 50......................................... 1,231 80,707 323 187,323 117 78,402 137 114,664 50 under 65..................................... 967 79,503 207 125,140 149 73,041 126 74,810 65 under 75..................................... 476 24,099 105 76,004 89 45,112 82 64,909 75 under 85..................................... 305 11,309 50 42,406 66 33,309 58 21,399 85 and older.................................... 92 3,054 14 9,921 21 9,077 15 5,311 Age Retirement assets ² Number (41) Total......................................................................................................... 3,091 Art Other assets Amount Number Amount Number (42) (43) (44) (45) 1,147,780 Amount (46) 110 21,083 3,516 220,478 100,588 Age Under 50.............................................................................................. 1,182 282,475 35 5,371 1,342 50 under 65.......................................................................................... 1,003 477,608 41 6,026 1,072 62,731 65 under 75.......................................................................................... 540 272,678 18 4,844 586 34,433 75 under 85.......................................................................................... 307 102,456 11 3,389 389 16,697 85 and older......................................................................................... 60 12,563 4 1,454 127 6,030 ¹ Mutual funds with a single investment objective are grouped with similar direct investments in this table. ² Includes individual retirement accounts, annuities, and self-employed retirement or Keogh plans. 143 Personal Wealth, 2001 Table 5.--Personal Wealth 2001: Female Top Wealth Holders with Gross Assets of $675,000 or More, Type of Property, by Age [All figures are estimates based on samples--numbers are in thousands, money amounts are in millions of dollars] Total assets Age Total................................................... Debts and mortgages Net worth Personal residence Number Amount Number Amount Number Amount Number (1) (2) (3) (4) (5) (6) (7) Amount (8) 3,404 6,291,628 2,633 457,576 3,404 5,834,052 2,592 902,607 Under 50......................................... 1,034 1,729,592 871 251,843 1,034 1,477,749 785 321,778 50 under 65..................................... 1,028 2,086,151 818 138,603 1,028 1,947,548 866 308,483 65 under 75..................................... 609 1,138,054 422 38,573 609 1,099,480 502 146,184 75 under 85..................................... 502 899,508 342 21,871 502 877,638 331 93,923 85 and older.................................... 230 438,323 180 6,686 230 431,637 109 32,239 Age Age Investment real estate Number Total................................................... Closely held stock Other stocks Amount Number (12) (13) State and local bonds Amount Number Amount Number (9) (10) (11) 1,558 635,060 357 345,078 2,653 1,546,183 (14) (15) 1,127 Amount (16) 426,579 Age Under 50......................................... 387 144,581 120 105,878 794 417,211 169 62,295 50 under 65..................................... 593 263,592 140 174,361 777 413,818 302 115,225 65 under 75..................................... 292 122,435 52 34,839 499 281,582 272 93,372 75 under 85..................................... 215 80,383 36 21,812 398 270,512 264 100,347 85 and older.................................... 71 24,070 10 8,188 184 163,060 120 55,340 Age 144 Total................................................... Federal savings bonds Other Federal bonds Number Amount Number (17) (18) (19) 396 20,691 593 Corporate and foreign bonds Bond funds Amount Number Amount Number Amount (20) (21) (22) (23) (24) 102,764 624 62,088 203 15,711 Age Under 50......................................... 70 1,048 113 20,439 111 17,318 48 3,925 50 under 65..................................... 103 1,587 151 18,693 184 14,916 53 4,313 65 under 75..................................... 96 6,929 139 27,672 129 9,392 47 3,512 75 under 85..................................... 92 8,510 123 19,871 138 13,951 36 2,141 85 and older.................................... 35 2,617 67 16,089 61 6,512 19 1,819 Footnotes at end of table. 144 Personal Wealth, 2001 Table 5.--Personal Wealth 2001: Female Top Wealth Holders with Gross Assets of $675,000 or More, Type of Property, by Age--Continued [All figures are estimates based on samples--numbers are in thousands, money amounts are in millions of dollars] Diversified mutual funds ¹ Age Total................................................... Cash Cash management accounts Mortgages and notes Number Amount Number Amount Number Amount Number (25) (26) (27) (28) (29) (30) (31) Amount (32) 820 62,969 3,193 351,329 2,320 262,638 613 164,389 Age Under 50......................................... 247 20,774 924 62,278 702 74,399 183 74,508 50 under 65..................................... 266 22,059 975 87,616 683 74,873 176 43,009 65 under 75..................................... 138 8,442 582 73,594 423 51,562 126 24,368 75 under 85..................................... 117 7,570 490 80,063 351 40,308 95 16,899 85 and older.................................... 52 4,125 223 47,778 160 21,496 34 5,604 Cash value life insurance Age Total................................................... Noncorporate business assets Number Amount Number (33) (34) (35) Farm assets Amount Number (36) (37) 1,864 59,325 353 205,480 284 Limited partnerships Amount Number (38) (39) 117,979 Amount (40) 329 127,485 Age Under 50......................................... 706 29,041 117 60,484 38 14,292 81 24,525 50 under 65..................................... 616 18,779 131 78,550 105 39,706 104 67,566 65 under 75..................................... 256 5,819 51 30,465 61 26,866 78 16,816 75 under 85..................................... 212 4,117 42 27,886 50 23,625 49 12,163 85 and older.................................... 74 1,569 13 8,096 29 13,491 17 6,415 Age Total......................................................................................................... Retirement assets ² Art Other assets Number Amount Number Amount Number (41) (42) (43) (44) (45) 2,450 654,358 125 39,832 3,033 Amount (46) 189,086 Age Under 50.............................................................................................. 794 203,821 35 3,215 918 67,783 50 under 65.......................................................................................... 842 244,670 49 28,448 935 65,887 65 under 75.......................................................................................... 467 141,726 21 4,267 567 28,215 75 under 85.......................................................................................... 283 54,093 14 2,082 433 19,252 85 and older......................................................................................... 64 10,048 7 1,819 182 7,948 ¹ Mutual funds with a single investment objective are grouped with similar direct investments in this table. ² Includes individual retirement accounts, annuities, and self-employed retirement or Keogh plans. 145 Personal Wealth, 2001 Table 6.--2001 Top Wealth Holders with Net Worth of $1 Million or More, Net Worth and Selected Assets, by State of Residence ¹ [All figures are estimates based on samples--numbers are in thousands, money amounts are in millions of dollars] Net worth 146 Total................................................. State of residence: Alabama....................................... Alaska.......................................... Arizona......................................... Arkansas...................................... California...................................... Colorado...................................... Connecticut.................................. Delaware...................................... District of Columbia...................... Florida.......................................... Georgia........................................ Hawaii.......................................... Idaho............................................ Illinois........................................... Indiana......................................... Iowa............................................. Kansas......................................... Kentucky...................................... Louisiana...................................... Maine........................................... Maryland...................................... Massachusetts............................. Michigan....................................... Minnesota.................................... Mississippi................................... Missouri....................................... Montana....................................... Nebraska...................................... Nevada......................................... New Hampshire........................... New Jersey.................................. New Mexico................................. New York..................................... North Carolina.............................. North Dakota................................ Ohio............................................. Oklahoma..................................... Oregon......................................... Pennsylvania................................ Rhode Island................................ South Carolina............................. South Dakota............................... Tennessee................................... Texas........................................... Utah............................................. Vermont....................................... Virginia......................................... Washington.................................. West Virginia............................... Wisconsin.................................... Wyoming...................................... Other areas ³................................ Financial assets ² All real estate All other assets Number Amount Number Amount Number Amount Number Amount (1) (2) (3) (4) (5) (6) (7) (8) 3,510 11,275,755 3,506 9,611,914 3,085 2,207,780 3,241 1,557,880 35 6 45 22 572 59 83 11 11 249 86 13 13 185 53 32 28 26 34 12 69 105 88 60 11 58 11 14 26 17 178 18 317 83 5 114 22 41 135 13 40 10 49 182 14 3 94 73 10 54 7 9 88,579 15,689 152,533 58,856 1,940,734 267,715 322,668 30,846 38,063 837,498 220,277 29,387 34,559 522,196 128,883 60,127 62,142 65,622 89,790 26,130 186,861 455,761 237,762 180,335 32,457 155,805 29,836 66,470 97,954 42,208 579,085 47,827 1,315,450 266,524 8,831 328,870 106,653 111,321 372,109 28,121 110,356 20,185 141,637 577,967 38,342 9,355 229,300 257,268 29,580 165,763 24,221 29,251 35 6 45 22 571 59 83 11 11 249 86 13 13 185 53 32 28 26 34 12 69 105 88 60 11 58 11 14 26 17 178 18 316 83 5 114 22 41 135 13 40 10 49 182 13 3 94 73 10 54 7 9 80,870 13,369 127,553 44,568 1,496,938 259,455 246,932 23,561 29,525 729,526 184,022 16,124 30,517 462,905 117,063 52,598 52,953 60,655 79,174 27,041 164,539 407,759 225,432 158,195 28,695 154,981 24,031 81,015 66,973 35,654 487,555 46,796 1,030,640 210,248 8,147 298,077 97,099 97,612 337,839 25,183 93,843 12,762 118,835 518,731 21,852 7,942 196,234 264,275 35,777 169,187 25,145 25,512 30 5 40 20 522 48 77 11 10 227 80 12 13 153 45 27 22 23 31 10 59 90 73 53 10 50 9 11 24 12 165 15 276 79 3 91 19 32 109 13 36 8 46 164 13 3 85 64 9 48 5 7 16,131 3,103 27,363 14,029 608,229 37,457 71,085 6,690 8,773 158,231 44,333 15,928 8,507 88,951 15,261 7,507 8,578 7,069 13,881 5,112 30,213 81,189 36,456 34,561 4,366 23,150 5,044 3,540 24,482 5,749 102,427 8,059 244,759 43,583 616 39,468 6,041 24,189 50,678 6,123 23,234 4,157 21,848 77,124 5,648 2,709 47,544 50,054 2,360 22,819 2,789 6,579 34 6 45 21 543 56 78 11 11 234 82 11 13 165 48 31 23 24 34 11 60 97 82 58 11 53 11 14 24 15 153 18 268 77 5 100 21 39 117 11 40 10 48 177 14 3 88 73 10 50 6 8 8,480 1,895 22,883 11,340 266,870 29,816 31,940 3,430 3,481 91,980 32,511 1,677 3,926 59,866 19,323 10,985 8,355 11,157 14,347 1,338 21,285 45,635 25,596 23,750 7,614 20,320 6,164 13,598 21,915 3,344 61,128 3,841 240,804 50,539 1,125 33,416 25,832 16,144 49,320 1,879 13,458 6,610 24,446 102,036 15,654 726 26,041 34,002 2,420 18,725 2,853 2,058 ¹ While the size of the underlying sample of estate tax returns makes estimates of wealth derived using the estate multiplier technique fairly robust, estimates of wealth by State can be subject to significant year-to-year fluctuations. This is especially true for individuals at the extreme tail of the net worth distribution and for States with relatively small decedent populations. ² Includes all stocks, bonds, mutual funds, cash, cash management accounts, retirement assets, and life insurance. ³ Includes U.S. territories and possessions. 146 --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A91bd3c5b8ad5cbab. Public record. Not legal advice.