-41-
claims against the estate founded on a promise or agreement must
be "contracted bona fide and for an adequate and full
consideration in money or money's worth". Sec. 2053(c)(1)(A).
One purpose of the consideration requirement of section 2053(c)
is to prevent decedents from reducing their taxable estates for
Federal estate tax purposes by reflecting in contractual form
transfers which serve a donative intent. United States v. Stapf,
375 U.S. 118, 130-133 (1963); Bank of New York v. United States,
526 F.2d 1012, 1016 (3d Cir. 1975). Situations in which estate
tax deductions have been allowed under section 2053(a)(3) for
payments made to family members typically involve arm's-length
agreements that are supported by actual consideration, not by
mere donative intent. Estate of Huntington v. Commissioner, 100
T.C. 313, 316 (1993), affd. 16 F.3d 462 (1st Cir. 1994).
Petitioner offered no evidence that the checks were
"contracted bona fide and for an adequate and full consideration
in money or money's worth". Sec. 2053(c)(1)(A). To the
contrary, the facts show clearly that decedent intended the
checks to be gifts. The intent to make a gift is not an intent
to create a bona fide debt. Estate of Labombarde v.
Commissioner, 58 T.C. 745, 755 (1972). Although section 25.2511-
1(g)(1), Gift Tax Regs., provides that donative intent is not an
essential element on the part of the transferor for the
application of the gift tax to the transfer, it is also true that
"A gift in the statutory sense, * * * , proceeds from a 'detached
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