Michael Ferguson and Valene Ferguson - Page 17

                                       - 17 -                                         
          became effective in January 1960.  The Court held that the date             
          on which the donor instructed his agent to transfer the stock to            
          the donee was not determinative of when the gift was complete.              
          See id. at 110.  Delivery of the gift of stock was complete upon            
          relinquishment of dominion and control of the stock by the donor,           
          which occurred upon actual transfer on the books of the issuing             
          corporation.  Id.; Morrison v. Commissioner, T.C. Memo. 1987-112.           
          The Court noted that even if the taxpayer's obligation upon                 
          delivery to his agent “were a legal instead of a moral one, the             
          existence of an obligation is not synonymous with its                       
          implementation.”  Londen v. Commissioner, supra at 110.                     
               First, the facts indicate that Brett Floyd acted as                    
          petitioners' agent and not the Charities' agent.  Brett Floyd not           
          only facilitated the transfer of AHC stock to the Charities, but            
          also assisted petitioners in the exchange of their AHC stock for            
          shares of CDI and the tender of their remaining shares in                   
          accordance with the tender offer.  The fact that Brett Floyd may            
          have assisted the Church on previous occasions does not change              
          the nature of his role with respect to the transactions involving           
          petitioners.  When petitioners Roger and Sybil Ferguson and                 
          Michael Ferguson placed, with the assistance of Brett Floyd,                
          341,366 and 391,651 shares of AHC stock in their respective                 
          accounts, Brett Floyd acted as petitioners' agent.  Second,                 
          petitioners delivered to Brett Floyd stock that Merrill Lynch               
          would not immediately sell or otherwise transfer.  Merrill                  




Page:  Previous  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  Next

Last modified: May 25, 2011