Generally, death taxes are a social instrument used to break up large quantities of wealth in this country. They are intended to act as a pressure relief valve and prevent wealth concentration in the hands of a small number of individuals. Because the objectives and goals of individuals may be quite different from society, forest landowners are one group who face potentially serious problems due to death taxes. Illiquidity, low cash flows and credit problems can cause difficulties for heirs of forest land. Death taxes are examined from a historical, legal and economic perspective. Specifically, this study focuses on the implications of both federal and state death taxes on private forest landowners. Particular attention is paid to changes which have occurred because of the 1981 Economic Recovery Tax Act (ERTA). Provisions which are designed to give estate tax relief to nonindustrial private forest landowners are also examined. Study results show that federal death taxes are not reducing wealth concentration. It is also shown that through proper planning, estate taxes at the federal level can be eliminated. The state death tax burden can be substantial however, and must still be considered, even though many states have substantially eased their laws following ERTA. Proper planning, particularly when forest land is involved, should include both spouses. Finally, note that special provisions designed to give estate tax relief to farm and woodland owners have fallen short of this goal, primarily because of the complex regulations which are involved. / M.S.