Estate Taxation with Both Accidental and Planned Bequests
24 Pages Posted: 6 Oct 2006
Date Written: September 2006
Abstract
Actual inheritances are an hybrid of canonical types of bequests and in particular of accidental bequests and altruistic bequests. In this paper, bequeathed estate consists of two components: an amount intended by altruistic parents and an amount which results from the "premature" death of parents. Altruistic parents can also invest in their children's education. Taxing those two types of bequests separately is known to have different implications. The purpose of this paper is to see the distributive incidence of estate taxation when those two components are indistinguishable. The substitutability between education and intended bequests plays a key role in the tax design.
Keywords: estate taxation, inheritance, bequests motives
JEL Classification: H20, D64
Suggested Citation: Suggested Citation
Here is the Coronavirus
related research on SSRN
Recommended Papers
-
By Louis Kaplow
-
By Louis Kaplow
-
Pareto Efficient and Optimal Taxation and the New New Welfare Economics
-
Distortionary Taxes and the Provision of Public Goods
By Charles Ballard and Don Fullerton
-
The Theory of Taxation and Public Economics
By Louis Kaplow
-
The Impact of the Estate Tax on the Wealth Accumulation and Avoidance Behavior of Donors
By Joel B. Slemrod and Wojciech Kopczuk
-
On the Undesirability of Commodity Taxation Even When Income Taxation is Not Optimal
By Louis Kaplow
-
On the Undesirability of Commodity Taxation Even When Income Taxation is Not Optimal
By Louis Kaplow
