-36-
Respondent's regulations provide:
The amount of cash belonging to the decedent at the date of
death, whether in his possession or in the possession of
another, or deposited with a bank, is included in the
decedent's gross estate. If bank checks outstanding at the
time of decedent's death and given in discharge of bona fide
legal obligations of the decedent incurred for an adequate
and full consideration in money or money's worth are
subsequently honored by the bank and charged to the
decedent's account, the balance remaining in the account may
be returned, but only if the obligations are not claimed as
deductions from the gross estate. [Sec. 20.2031-5, Estate
Tax Regs.]
Whether the Gifts Were Complete
We turn now to the question as to whether under State law
the gifts were completed prior to decedent's death so as to
exclude the amounts involved from her estate. The elements of a
valid gift are: Intention to give; a renunciation of the right
of ownership by the giver without power of revocation; and
delivery of the possession by the giver to the recipient.
Upchurch v Upchurch, 45 S.E.2d 855, 856 (Ga. Ct. App. 1947).
Under Georgia law, to constitute a valid inter vivos gift the
following criteria must be met: (1) the donor must intend to give
the gift; (2) the donee must accept the gift; and (3) the gift
must be delivered or some act which under law is accepted as a
substitute for delivery must be done. Ga. Code Ann. sec. 44-5-80
(1991); NeSmith v. Ellerbee, 416 S.E.2d 364, 366 (Ga. Ct. App.
1992).
Whether the third criterion, delivery, has been met is in
dispute. Failure of delivery invalidates the gift. Furthermore,
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