Intergenerational transfers, asset management and tax avoidance
AbstractTaxpayers are considerably interested in tax planning for intergenerational transfers (inter vivos gifts and bequests) that minimize the payment of taxes. Nordblom and Ohlsson (2006) demonstrated that (1) altruistic parents avoid tax payment by changing the timing of transfers when inter vivos gifts are taxed differently from bequests and (2) tax avoidance ceases to exist if bequests and gifts from the same donor are jointly taxed. This paper aims to demonstrate that if the wealth management/investment behavior of the parent is taken into consideration, tax avoidance will persist even when gifts and bequests are jointly taxed. This is because parents dislike missing an opportunity to gain investment returns from the payment of taxes on gifts that exceed the exemption level.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 29 (2009)
Issue (Month): 2 ()
Contact details of provider:
Tax avoidance; bequests; inheritances; inter vivos gifts; wealth management/investment;
Find related papers by JEL classification:
- H1 - Public Economics - - Structure and Scope of Government
- D1 - Microeconomics - - Household Behavior
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley).
If references are entirely missing, you can add them using this form.