- 9 - 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 them. 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].Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011