-27-
under section 2503(b) from decedent's taxable gifts. Section
2503(b) excludes from taxable gifts only the first $10,000 of
gifts made by a donor to a person in a calendar year. We found
in supra Issue 1. that decedent transferred fractions of her
interest in the Weinstock Residence to Lewis, Betty, and Jack in
1984, 1985, and 1986. Neither the specific dates in 1985 and
1986 of the transfers,13 nor the value of decedent's interest in
the Weinstock Residence on those dates,14 are in the record. The
$10,000 cash transfers to the children in 1985 and 1986 were
completed gifts when the checks were paid by the drawee on
December 17, 1985, and January 14, 1986, respectively.15
Section 2503(b) does not exclude from taxable gifts the amount
by which the sum of the value of the one-ninth interest in
decedent's life estate plus the $10,000 in cash transferred to
each child exceeds $10,000.
Respondent's Additional Arguments Regarding the Annual Gifts
to the Eight Weinstock Trusts
Although we have concluded that the annual gifts to the
decedent's children and her daughter-in-law were gifts of present
13 The 1985 and 1986 deeds are undated except for the
year.
14 The age of decedent on the dates on which the interests
in the Weinstock Residence were transferred will determine the
value of those interests. See supra note 4; sec. 20.2031-
7A(d)(6), Estate Tax Regs.
15 A gift made by check is not complete until the check is
honored by the drawee. See discussion supra Issue 3.
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