... probate disputes. The Article describes six court-sponsored programs designed to encourage th... more ... probate disputes. The Article describes six court-sponsored programs designed to encourage the use of media-tion in probate disputes in five jurisdictions and containsattorney feedback on each of the six programs. The Article ...
ABSTRACT Despite the recent downturn in the stock market, the 1990s boom and the shift to defined... more ABSTRACT Despite the recent downturn in the stock market, the 1990s boom and the shift to defined contribution plans mean that more individuals will have significant wealth upon retirement. How they use that wealth will determine not only their own well-being, but also the living standards of their children, the resources available to philanthropies, and the level of investment capital in the economy. This volume explores the reasons why people save, how they decide to allocate their wealth once they retire, and how givers select their beneficiaries. It also assesses the extent to which the estate tax and annuitization of retirement wealth affects the amount and nature of wealth transfers. Finally, it looks at the impact of wealth transfers—first on the amount of aggregate saving and capital accumulation, and then on the distribution of wealth among households. Several conclusions emerge. First, gifts and bequests are important; they may account for about half of total wealth in America. Second, rich people make most of the wealth transfers. They are thoughtful about how much they pay in taxes and how they dispose of their wealth. They care about philanthropic causes and view their charitable contributions as more than a way to avoid paying estate taxes. Third, most nonrich people probably have some lexicographic preferences about the disposition of their wealth; they want to ensure they have adequate resources to take care of their own needs, and if money is left over, they would like it to go to their children. Fourth, little support has emerged for the pure altruistic model of bequests. Fifth, institutions matter. In the case of the rich, the estate tax probably reduces saving and increases bequests to charity. In the case of the nonrich, the shift to defined contribution plans will at a minimum mean that they have more wealth in their hands when they die, and therefore they will leave larger accidental bequests. It might also increase their interest in leaving an estate for their heirs. Saving and bequest behavior remains a fertile ground for future research. Major differences of opinion remain on such important issues as the effect of bequests on the distribution of wealth. The contributors to this volume provide a summary of existing knowledge, push the debate forward, and link topics in a unique and comprehensive way. At the same time, they make clear that many questions remain unresolved about the motives for and effects of wealth transfers.
Congressional testimony focusing on (1) the importance of the estate tax, particularly in support... more Congressional testimony focusing on (1) the importance of the estate tax, particularly in supporting the fairness of our tax system and (2) the significant societal costs that would result from repeal of the estate tax.In one form or another, the estate tax has been with us since this country’s earliest days. The first estate tax was enacted in 1797, long before the income tax. Our modern estate tax was enacted in 1916, a mere three years after the enactment of the income tax. Any tax that has stood the test of time for so long should not be repealed without due attention to the role that it plays in our society, and the negative repercussions that could result from its repeal.
A donor may set up a charitable foundation in perpetuity, and the foundation's trustees are oblig... more A donor may set up a charitable foundation in perpetuity, and the foundation's trustees are obligated to carry out the donor's intent. These two defining features of the American legal system afford donors a form of immortality, writes Boston College law professor Ray Madoff in her new book, Immortality and the Law: The Rising Power of the American Dead (Yale University Press). But when current needs are effectively surrendered to the "dead hand" of the past, and when that trend is driven not by the wishes of the dead so much as by the living who stand to benefit the most-trustees, bankers, and financial services companies, society and the donor himself or herself ultimately lose, Madoff argues. On May 18, Hudson Institute's Bradley Center gathered a panel of experts to discuss the issues raised in Madoff's book: Is it impossible to prevent donor intent from being corrupted? To what extent should it be honored after a donor's death? Who should decide? Panelists included author Ray Madoff herself, as well as
... probate disputes. The Article describes six court-sponsored programs designed to encourage th... more ... probate disputes. The Article describes six court-sponsored programs designed to encourage the use of media-tion in probate disputes in five jurisdictions and containsattorney feedback on each of the six programs. The Article ...
ABSTRACT Despite the recent downturn in the stock market, the 1990s boom and the shift to defined... more ABSTRACT Despite the recent downturn in the stock market, the 1990s boom and the shift to defined contribution plans mean that more individuals will have significant wealth upon retirement. How they use that wealth will determine not only their own well-being, but also the living standards of their children, the resources available to philanthropies, and the level of investment capital in the economy. This volume explores the reasons why people save, how they decide to allocate their wealth once they retire, and how givers select their beneficiaries. It also assesses the extent to which the estate tax and annuitization of retirement wealth affects the amount and nature of wealth transfers. Finally, it looks at the impact of wealth transfers—first on the amount of aggregate saving and capital accumulation, and then on the distribution of wealth among households. Several conclusions emerge. First, gifts and bequests are important; they may account for about half of total wealth in America. Second, rich people make most of the wealth transfers. They are thoughtful about how much they pay in taxes and how they dispose of their wealth. They care about philanthropic causes and view their charitable contributions as more than a way to avoid paying estate taxes. Third, most nonrich people probably have some lexicographic preferences about the disposition of their wealth; they want to ensure they have adequate resources to take care of their own needs, and if money is left over, they would like it to go to their children. Fourth, little support has emerged for the pure altruistic model of bequests. Fifth, institutions matter. In the case of the rich, the estate tax probably reduces saving and increases bequests to charity. In the case of the nonrich, the shift to defined contribution plans will at a minimum mean that they have more wealth in their hands when they die, and therefore they will leave larger accidental bequests. It might also increase their interest in leaving an estate for their heirs. Saving and bequest behavior remains a fertile ground for future research. Major differences of opinion remain on such important issues as the effect of bequests on the distribution of wealth. The contributors to this volume provide a summary of existing knowledge, push the debate forward, and link topics in a unique and comprehensive way. At the same time, they make clear that many questions remain unresolved about the motives for and effects of wealth transfers.
Congressional testimony focusing on (1) the importance of the estate tax, particularly in support... more Congressional testimony focusing on (1) the importance of the estate tax, particularly in supporting the fairness of our tax system and (2) the significant societal costs that would result from repeal of the estate tax.In one form or another, the estate tax has been with us since this country’s earliest days. The first estate tax was enacted in 1797, long before the income tax. Our modern estate tax was enacted in 1916, a mere three years after the enactment of the income tax. Any tax that has stood the test of time for so long should not be repealed without due attention to the role that it plays in our society, and the negative repercussions that could result from its repeal.
A donor may set up a charitable foundation in perpetuity, and the foundation's trustees are oblig... more A donor may set up a charitable foundation in perpetuity, and the foundation's trustees are obligated to carry out the donor's intent. These two defining features of the American legal system afford donors a form of immortality, writes Boston College law professor Ray Madoff in her new book, Immortality and the Law: The Rising Power of the American Dead (Yale University Press). But when current needs are effectively surrendered to the "dead hand" of the past, and when that trend is driven not by the wishes of the dead so much as by the living who stand to benefit the most-trustees, bankers, and financial services companies, society and the donor himself or herself ultimately lose, Madoff argues. On May 18, Hudson Institute's Bradley Center gathered a panel of experts to discuss the issues raised in Madoff's book: Is it impossible to prevent donor intent from being corrupted? To what extent should it be honored after a donor's death? Who should decide? Panelists included author Ray Madoff herself, as well as
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