Estate of Sarah H. Newman, Deceased, Mark M. Newman, Co-Executor and Minna N. Nathanson, Co-Executor - Page 1

                                   111 T.C. No. 3                                     

                               UNITED STATES TAX COURT                                

                ESTATE OF SARAH H. NEWMAN, DECEASED, MARK M. NEWMAN,                  
           CO-EXECUTOR AND MINNA N. NATHANSON, CO-EXECUTOR, Petitioner v.             
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 17516-96.                    Filed July 28, 1998.           

                    Decedent (D) executed a power of attorney                         
               appointing her son (S) attorney-in-fact.  Prior to D's                 
               death, S drew six checks against D's checking account                  
               payable to himself, his wife, his brother, his nieces,                 
               and two other individuals.  These checks were neither                  
               accepted, nor paid, by the drawee bank until after D's                 
               death.  Petitioner argues that these checks represent                  
               completed gifts of funds in D's checking account that                  
               are not includable in D's gross estate.                                
                    Held:  D maintained dominion and control over the                 
               amounts in her checking account against which the                      
               checks were written until her death.  Accordingly, the                 
               checks were not completed gifts during her lifetime.                   
                    Held, further:  These noncharitable gifts are not                 
               deemed to be complete under the theory that the payment                
               of the checks after D's death relates back to the date                 
               of delivery prior to D's death.  Estate of Metzger v.                  
               Commissioner, 100 T.C. 204 (1993), affd. 38 F.3d 118                   

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