In order to examine how the estate and tax system affects individuals' decisions on property transfers, this study uses Taiwanese estate and gift tax re- turns data from 2001 to 2014 to study individuals' willingness to make inter vivos property transfers, the number of annual gifts, and the amount of annual gifts. Results from the Probit regression, statistic test and difference-in-difference (DID) analysis suggest that the estate and gift tax reform in 2009 affects inter vivos property transfers siginificantly: in cases where decedents' net wealth is higher than the estate tax exemption, the tax reform increases individuals' willingness to make inter vivos property transfers, the number of annual gifts, and the amount of annual gifts; furthermore, the effect is increasing with respect to the level of net wealth.