The Estate Tax and Inter Vivos Transfers over Time
- (pp. 478-83)
AbstractThe strong dislike evidenced by the American public towards the estate tax suggests that the wealthy wish to transfer resources to their heirs tax-free and would thus exploit mechanisms allowing them to reduce the tax burden whenever possible. However, I find strong evidence that the wealthy fail to utilize what is perhaps the simplest method of tax avoidance--that of making transfers to eventual heirs up to the annual exclusion. Instead they transfer far less than the amount permitted by the tax code, whether measured in cross-section or over time. In failing to give more, they forgo significant tax savings.
Citation2013. "The Estate Tax and Inter Vivos Transfers over Time." American Economic Review, 103(3): 478-83. DOI: 10.1257/aer.103.3.478
- H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
- H71 State and Local Taxation, Subsidies, and Revenue
- K34 Tax Law