Estate of Carolyn W. Holland, Deceased, Jack K. Holland, Lewis G. Holland, Sr., and Betty H. Kann, Executors - Page 12

                                        -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.              



Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011