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To: Moominoid who wrote (67410)	8/13/2005 3:39:08 PM
From: Moominoid	Read Replies (1) \| Respond to of 74559

Now I'm finding some stuff: "Israeli Attitudes About Inter Vivos Transfers" Yuval Elmelech Seymour Spilerman Economics Working Paper Archive from Levy Economics Institute, The Abstract: Using data from the 1994-95 Survey of Families in Israel--which includes 1,607 urban Jewish respondents interviewed on topics relating to work behavior, household income, wealth, assistance received from parents and given to children, and views about financial responsibilities between parents and children--the authors examined attitudes in Israel about intergenerational assistance and the effects of these attitudes on transfer decisions by parents. Views about parental obligations are likely not independent of a country's economic and social organization. In a country with an extensive program of public assistance for young adults, for example, there may be less need for private family transfers and less of a sense of parental responsibility for providing support. Similarly, where young couples face severe liquidity constraints or otherwise require substantial resources in order to begin a household, parental feelings of obligation might be heightened. Israel is a country in which the need for parental support is high and the level of parental involvement in the financial lives of young adults is often considerable. New Economics Papers: this item is included in nep-ltv Date: 2001-10 Downloads: (external link) levy.org (application/pdf) Compensatory inter vivos gifts Stefan Hochguertel (shochguertel@feweb.vu.nl) and Henry Ohlsson (henry.ohlsson@nek.uu.se) No 31, Working Papers in Economics from Göteborg University, Department of Economics Abstract: Empirical studies of intergenerational transfers usually find that bequests are equally divided among heirs while inter vivos gifts tend to be compensatory. Using the 1992 and 1994 waves of the Health and Retirement Study, we find that only 4% of parents who give, divide their gifts equally among their children. Estimating probit models, using family panels, we find that gifts are compensatory in the sense that a child is more likely to receive a gift if she works fewer hours and has lower income than than her brothers and sisters. These results carry over to the amounts given. Fixed effects Tobit estimations show that the fewer hours a child works and the lower her income is, the more the parents give. Gifts are compensatory. The empirical results are, therefore, consistent with the predictions of the altruistic model of intergenerational transfers. Estate and Gift Taxes and Incentives for Inter Vivos Giving in the United States James Poterba (poterba@mit.edu) No 6842, NBER Working Papers from National Bureau of Economic Research, Inc Abstract: This paper describes the current estate and gift tax rules that apply to intergenerational transfers in the United States. It summarizes the incentives for inter vivos giving as a strategy for reducing estate tax liability. It shows that the current level of intergenerational transfers is much lower than the level that would be implied by simple models of dynastic utility maximization. Moreover, it demonstrates that even among elderly households with net worth in excess of $2.5 million, roughly four times the net worth at which the estate tax takes effect, only about forty-five percent take advantage of the opportunity for tax-free inter vivos giving. Cross-sectional regressions using the 1995 Survey of Consumer Finances suggest that transfers rise with household net worth, possibly reflecting the impact of progressive estate taxes. In addition, households with a preponderance of their net worth in illiquid forms, such as a private business, are less likely to make transfers than their equally wealthy counterparts with more liquid wealth. Households with substantial unrealized capital gains, for whom the benefits of capital asset basis step-up at death are greatest, are less likely to make large inter vivos transfers than similarly wealthy households with higher basis assets. Nevertheless, the aggregate flow of intergenerational transfers is much smaller than the level that would result if all households that were likely to face the estate tax attempted to transfer resources through inter vivos gifts. Reforms reducing the generosity of pensions have distributional effects on future generations if individuals care about their descendants’ welfare, but only affect elderly individuals if bequests are the unintentional result of precautionary savings. And safety-net programmes such as unemployment insurance may displace sources of private help, such as that provided by living parents to their children in need. This paper provides comparable measures of how expected bequests and transfers vary with cumulated parental earnings in the United States, West Germany and the United Kingdom. The strength of bequest motives is empirically very weak in the available data. Private inter vivos transfers, which appear to depend on the recipients’ economic situation, are partly crowded out by public unemployment insurance programmes. Together, involuntary bequests and intentional inter vivos transfers appear to be an important channel of intergenerational inequality transmission, and strengthen substantially the relationship between an individual’s and his parents’ economic status. — Ernesto Villanueva

To: Moominoid who wrote (67410)	8/13/2005 7:33:06 PM
From: shades	Read Replies (1) \| Respond to of 74559

I can give you one observation from my own 2 eyes, my moms day, her grandfather was dirt poor farmer, she had 2 choices, work the fields and the farm and be independant women, or try to find some man and them move in together and try to get ahead in life - so the poverty reinforced young people spending more time and needing each other more - the old had no money to pass on and compete. Today it is 180 difference - young working guy or military man got no money - but rich grandparents do - so if you want the big fun and adventure - young girl gonna go off with grandparents instead of me. Look this is not hypothetical these are real world experiences I share, I was going to brunswick with this one girl and hang out at st. simons island, nice weekend at the beach I thought, granddad calls her - offers her week cruise to bahamas, she say no (cause she knew it would piss me off) so then I know that selfish fugger sweeten the pot for her a little, he offer to take one of her friends, buy her a horse for her farm, and give her a lot of money for shopping. So her choice was boring weekend at the beach with me picking up shells - or wild fun adventures with super rich granddaddy and a horse she had wanted for several years - had I lived in 1930 - this girl would have chose me - but in the modern USA - the culture DIVIDES me and her, it does not UNITE us like in the past. Look at Slagle, he went to a poorer culture to find a wife - i know this is the only way I will find a woman to raise a family like I want - looking here is pointless - like my native american indian friend says - they are all TOO RICH - but if I can go to phillipines like slagle and find some poor girl I have lots better chances - but I am meeting too many phillipine girls that are online and getting all kinds of slagle types sending them FREE MONEY and GIFTS from internet chat rooms - so I wonder if it is too late. Bill Gates said he is not going to leave all his wealth to his kids, he gives a lot away to Africa after ted turner shamed him into it (see us southern boys really are nice folks) - he said he will only leave them 10 million - enough they can be OK - and if they want build their own empire - but not enough to buy off any major political crap without them EARNING thier power.

To: Moominoid who wrote (67410)	8/13/2005 11:59:28 PM
From: elmatador	Read Replies (2) \| Respond to of 74559

It is very simple: How one distribute spending over a life time. That's the core of the matter. Older generation reactions to the economy ended up leaving them with too much as they got old. Now they want to spend since they have a guilty feeling. Thinking: we should have given that to our kids when they asked. Now we have too much and we want to compensate for the time we held the strings to tight. Also the older generations have knowledge of inflation. Now ee leave in an age of deflation and their money is buying more than they thought it would. I will just give experiment a head start and she can take it from there. There is a cave man inside this elmat. Dormant. It is the remains of the thousands of years of evolution when, for survival, he drunk warm blood when hungry. If someone pisses elmat real good, that beast wakes up, brain releases chemicals in the blood stream. Logical brain swicthes off. The killing instinct comes alive as it was necessary 15.000 years ago. Experiment have never tasted Elmat's rage. One doesn't pisses of elmat. Else the beast dormant wakes up If that happens, I'll can take the whole stuff out, pile up the whole crap and make a bonfire in the backyard, and will grill the fucking dog, alive, while this is happening a video recorder is on to keep it. And any time someone think about making something unwise, I tell: Run this video so that you remember what happens when I get pissed off.