Estate of Sylvia P. Goldman, Deceased, Marsha Goldberg and Linda Tanenbaum, Co-executrices - Page 9

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            estate includes the value of all property to the extent that the                          
            decedent had an interest in it at the time of her death.  Sec.                            
            2033.  "The amount of cash belonging to the decedent at the date                          
            of his death, whether in his possession or in the possession of                           
            another, or deposited with a bank, is included in the decedent's                          
            gross estate."  Sec. 20.2031-5, Estate Tax Regs.  State law                               
            determines the extent of a decedent's interest in property.                               
            Burnet v. Harmel, 287 U.S. 103, 110 (1932).                                               
                  Petitioner contends that decedent intended to make $10,000                          
            gifts to family members and that the power of attorney authorized                         
            Marsha to make such gifts.  We hold that decedent did not intend                          
            to make these transfers and that Marsha had no authority to make                          
                  A.  Decedent's Intent To Make Gifts                                                 
                  We must determine, under New York law, whether the sixteen                          
            $10,000 checks that Marsha wrote to various family members were                           
            valid and completed gifts.  United States v. Rodgers, et al, 461                          
            U.S. 677, 683 (1982); Muserlian v. Commissioner, 932 F.2d 109,                            
            113 (2d Cir. 1991), affg. T.C. Memo. 1989-493.  According to the                          
            New York Court of Appeals, New York's highest court, a gift is                            
            valid only if donative intent, delivery, and acceptance are                               
            established.  See, e.g., Gruen v. Gruen, 496 N.E. 2d 869, 872                             
            (1986).  "[T]he proponent of a gift has the burden of proving                             
            each of these elements by clear and convincing evidence."  Id.                            
            [citations omitted].                                                                      

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