The Tax Treatment of Intergenerational Wealth Transfers

Abstract

This article surveys the theoretical literature on wealth transfer taxation. The focus is normative: we are looking at the design of an optimal tax structure from the standpoint of both equity and efficiency. The gist of this survey is that the optimal design crucially depends on the assumed bequest motives. Alternative bequest motives are thus analyzed either in isolation or combined. (JEL codes: H21, H23, H24, E6, D64)

The Effect of the Recent Inheritance Tax Reform on Bequest Behaviour in Japan

“…See Cremer and Pestieau () for a useful survey of the theoretical literature on wealth transfer taxation in which they develop the optimal tax structure under alternative bequest models. See also Laitner and Ohlsson () for a comprehensive review of theoretical models of bequest motives and their implications for public policy, including estate taxation.…”