In this study, I used a dynamic approach to investigate factors that influence the status of and changes in living arrangements among elderly people approaching the end of life. The data source was a nationwide survey of over 3,893 Taiwanese residents above 60 years of age, conducted in 1989, 1993, 1996, and 1999 by Executive Yuan of the National Institute of Family Planning of the Taiwanese Department of Health. The results show that living with their married children was the most common living arrangement for aging people in Taiwan; this decision may result from their concern about becoming sick or disabled over time. They tried to overcome these risks by enlarging the family structure. Due to coincidental factors such as the loss of an IADL, only those people who lived alone or with their spouse sought to engage healthcare resources by changing their living arrangement. On the other hand, elderly people in the United States change their living arrangements only when their ADL disabilities become quite serious. This contrast indicates that elderly people in Taiwan react sooner than elderly people in the United States to changes in their health.