Death Duties

Press, Volume C, Issue 29523, 26 May 1961, Page 3

Death Duties

Sir.—l can assure “Lazarus" that I am already in receipt of a pension and of universal superannuation and they are not doles. Believe me. I paid for them. His idea of socialism is quite erroneous. No sensible socialist claims that all men merit the same reward, not even of the tortures of Procrustes’ bed. I can also assure him that if I won £ 100.000 I would cede £40.000 or £60.000 of it just as readily and willingly as the landowner. The land-owner and I would quite permanently relinquish all possession of our property at death and it would pay death duties which would not be too high at £40.000 or £6o,ooo—Yours, etc.. A. F. PALMER. Waimate, May 24, 1961.

Sir, —Just in case some of your readers are worrying themselves into their graves after reading your recent articles and leader, here are a few facts which might console them. In 1938. of the 11.840 estates passed for duty 75 per cent, were of a lesser value than £5OOO and rather less than 3 per cent, were of a value of £30.000 and over. Under present legislation, where the final balance of the husband's estate does not exceed £7500. no duty is payable in respect of the widow’s share. If a husband’s estate does not exceed £30.000 in value, estate duty on the widow’s interest up to a maximum of £7500 is remitted. The 3 per cent, of the population with whom you are so concerned have ample means within the law to reduce and protect their estates in their own lifetime. as many prudent men have already done.—Yours, etc., R.P. March 5, 1961. [This letter was referred to the panel of authors responsible for the articles, and their reply is as follows: “The

correspondent has misread the articles if he assumes that the present high rate of death duties is of concern only to 3 per cent, of the population. The impact of economic loss to the national finances arises from the reduction of earning power or production when the larger estates and one-man businesses have to be sold or reduced to meet the demand for large sums of death duty payable within six months of death."]