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remained in Jack's possession. Petitioner excluded the amount of
the 12 checks, $120,000, from the value of the estate in the
Federal estate tax return filed on February 25, 1991.
Respondent determined that decedent died before the transfer
of the 12 checks was completed, and that the $120,000 is
therefore includable in the value of the estate. Petitioner
asserts that the gifts were completed when decedent handed the
checks to Jack for delivery, are nontaxable gifts under section
2503(b), and were, therefore, properly excluded from the estate.
In the alternative, petitioner asserts that the total amount of
the checks is allowed as a deduction under section 2053(a)(3) as
a claim against the estate.
Section 2001 imposes a tax on the transfer of the taxable
estate of all citizen and resident decedents. Section 2051
defines taxable estate as the gross estate less deductions. "The
value of the gross estate shall include the value of all property
to the extent of the interest therein of the decedent at the time
of his death." Sec. 2033. Whether decedent had an interest in
property at the time of her death is governed by State law.
Estate of Gamble v. Commissioner, 69 T.C. 942, 948 (1978).
Petitioner has the burden of proof. Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933).
The issue is whether the amounts represented by the checks
issued by decedent 4 days before her death, but not paid until
after her death, are properly excludable from the gross estate.
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