EconPapers    
Economics at your fingertips  
 

Deathbed tax planning

Oscar Erixson and Sebastian Escobar

Journal of Public Economics, 2020, vol. 185, issue C

Abstract: We estimate the extent of inheritance tax avoidance among married decedents in Sweden. Following Kopczuk (2007), we compare estates of decedents who pass away from terminal illness and those of decedents who pass away suddenly, the assumption being that the onset of terminal illness triggers planning. Extending on Kopczuk (2007), we also use exogenous variation in the incentives for tax planning created by an inheritance tax repeal in Sweden, which allows us to account for factors related to illness that may affect the estate value but are unrelated to tax planning (e.g., increased medical expenditures and lost income). Unlike earlier studies, we find no evidence of end-of-life inheritance tax planning, suggesting that this was of little importance in the setting we study.

Keywords: Tax avoidance; Tax reform; Terminal illness (search for similar items in EconPapers)
JEL-codes: H26 H31 D64 D14 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0047272720300347
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:185:y:2020:i:c:s0047272720300347

DOI: 10.1016/j.jpubeco.2020.104170

Access Statistics for this article

Journal of Public Economics is currently edited by R. Boadway and J. Poterba

More articles in Journal of Public Economics from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-11-21
Handle: RePEc:eee:pubeco:v:185:y:2020:i:c:s0047272720300347