To recoup on future losses in income taxes caused by transfers, the government taxes the transfer of

the properties. 3. The Benefit Received Theory When a person transfers property by donation or

succession, the government is a party in the orderly transfer of the property to the donee or heir. This is

made possible by government laws which enforce or effectuate donation and succession. The transferor

is actually exercising a privilege to transfer his property under government security of an effective and

orderly transmission under its laws which define and effect donation or succession. Without these laws,

the transfer could not have been conveniently possible, 5 Exercising this special privilege to transfer

property either inter vivos or mortis causa is a benefit to the transferor. In accordance with the benefit

received theory, the transfer should be taxed. The benefit received theory is the most dominant

rationalization of transfer taxation. 4. The State Partnership Theory The state ensures a civilized and

orderly society where commercial undertaking and wealth accumulation flourish. The government

therefor is an indirect partner behind all forms of wealth accumulation by any person within the state.

Thus, when a person transfers part or the whole of his wealth, the government should take its fair share

by taxing the trans the wealth to other persons. 5. Wealth Redistribution Theory Equitable distribution

of wealth is widely accepted as an elemen