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for its performance, it has been held to create a condition
subsequent". Tizard v. Eldridge, 25 N.J. Super. at 481, 96 A.2d
at 691.
Respondent also points out that Patricia Low acted as if she
were the sole owner of the agency after decedent's death; she
signed S corporation tax returns listing herself as the 100-
percent owner of agency stock and reported the corresponding
income or loss on her individual Federal income tax returns.
These actions indicate that Patricia Low believed she had
inherited the stock and had accepted the bequest, despite her
testimony to the contrary at trial.
Petitioner argues that the stock bequest was subject to a
condition precedent; if the monthly payments were not made by
Patricia Low, then the condition would fail, and the stock would
pass under the residuary clause to her father. Under New Jersey
law, gifts subject to a condition precedent do not vest until the
condition is met. Tizard v. Eldredge, supra. Under petitioner's
reasoning, since it is undisputed that Patricia Low did not make
the payments, the stock would pass directly from decedent's
estate to the surviving spouse and thus qualify for the marital
deduction. Petitioner argues that even if the will is
interpreted as giving the stock to Patricia Low subject to a
charge to make monthly payments, the surviving spouse still
inherited something at decedent's death; namely, the right to
either a stream of payments or the stock. This right, according
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