-12-
184 S.E. 623, 624 (Ga. 1936) (the crucial test to determine
whether deed conveys title to land is the intention of the
parties, which is determined by looking at the whole deed).
Decedent, however, did not intend to convey nine-ninths of
her interest in the property in 1984. Rather, the fact that she
deeded additional fractional interests in 1985 and 1986 is clear
and unequivocal evidence that she intended to convey three-ninths
of her entire interest in each of the 3 years. See Dodge v.
United States, 413 F.2d 1239, 1243 (5th Cir. 1969) (it is
unnecessary to consider the reformation agreement as an operative
instrument; its only function is the evidentiary one of
supporting the factual finding that the transferor was mistaken).
Thus, the question for Federal gift tax purposes, is whether
decedent's entire interest in the property was transferred in
1984, or were fractional interests conveyed in 1984, 1985, and
1986? The answer to this question turns on whether decedent had
a right to reform the deed to conform to the parties' intentions.
Dodge v. United States, supra; Touche v. Commissioner, 58 T.C.
565 (1972).
A gift is subject to tax only when the donor has so parted
with dominion and control as to leave him no power to change its
disposition. Sec. 25.2511-2(b), Gift Tax Regs. The gift tax is
not applicable to a transfer of bare legal title, but only to a
transfer of a beneficial interest in property. Sec. 25.2511-
1(g)(1), Gift Tax Regs. Any gift in which the donor reserves the
right to revest the beneficial title in himself is incomplete.
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