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Intergenerational transfers, asset management and tax avoidance


  • Ryo Ogawa

    () (Osaka Prefectural Government Institute for Advanced Industry Development)


Taxpayers 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.

Suggested Citation

  • Ryo Ogawa, 2009. "Intergenerational transfers, asset management and tax avoidance," Economics Bulletin, AccessEcon, vol. 29(2), pages 1003-1018.
  • Handle: RePEc:ebl:ecbull:eb-09-00173

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    References listed on IDEAS

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    More about this item


    Tax avoidance; bequests; inheritances; inter vivos gifts; wealth management/investment;

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • D1 - Microeconomics - - Household Behavior


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