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because the documents are silent on both of the contingencies
under consideration.
State law determines certain rights of the parties, and
Federal law determines the Federal income tax consequences of
those rights. Morgan v. Commissioner, 309 U.S. 78, 80 (1940);
Lucas v. Earl, 281 U.S. 111 (1930); Sampson v. Commissioner, 81
T.C. 614, 618 (1983), affd. without published opinion 829 F.2d 39
(6th Cir. 1987). In this case, the temporary order does not
indicate whether the amounts paid were exclusively for Ms.
Ambrose or whether the payments would cease upon her death. In
this case, we look to State law to determine whether a postdeath
legal obligation exists here for purposes of section 71. Id.
California Family Code section 4337 (West 1994) provides
that, "Except as otherwise agreed by the parties in writing, the
obligation of a party under an order for the support of the other
party terminates upon the death of either party or the remarriage
of the other party."
Thus, pursuant to California law, if any portion of the
undesignated payment is spousal support, section 71(b)(1)(D) is
satisfied in that the payment obligation terminates upon the
death of the payee spouse. Hence, if the payor spouse and the
payee spouse do not otherwise agree in writing, then California
law provides that the support obligation terminates upon the
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