Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267960 
Year of Publication: 
2022
Series/Report no.: 
IFS Working Paper No. W22/29
Publisher: 
Institute for Fiscal Studies (IFS), London
Abstract: 
We quantify the size and tax-responsiveness of financial transfers made to heirs before death. The wealth of singles (including widows) with children declines substantially in anticipation of death. 92% of this decline is explained by transfers to children, while long-term care copayments can explain the remainder. Tax-reducing transfers are made across the wealth distribution and are very responsive to the tax rate. Using bunching and difference-in-bunching estimation and exploiting a reform to gift taxation, we estimate Frisch elasticities of gifts to the net-of-tax rate between 9, for those giving around €27,000, and 1, for those giving around €125,000.
Subjects: 
Deathbed giving
inter-vivos transfers
bequests
JEL: 
D12
D14
D64
H26
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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