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We do not dispute the wisdom of declining to extend the
relation-back doctrine in the circumstances presented
in McCarthy and Gagliardi, when the donor died while
the checks were still outstanding. Clearly there is a
very real danger of fostering estate tax avoidance in
cases in which checks are not cashed until after the
donor dies. However, that is not the situation in this
case. [Estate of Metzger v. Commissioner, 38 F.3d at
122.]
Unlike decedent here, the donor in Estate of Metzger v.
Commissioner, supra, was alive at the time the checks were
presented and paid by the drawee. The facts in the case before
us are more analogous to those presented in McCarthy v. United
States, supra, and Estate of Gagliardi v. Commissioner, supra.8
Therefore, we hold that the relation-back doctrine does not apply
to checks representing noncharitable gifts which were accepted
and paid by the drawee after decedent's death.
Accordingly, the checks in issue were not completed gifts
during decedent's lifetime, and the value of the underlying funds
is includable in decedent's gross estate. Because our holding
resolves the sole issue before us, we need not address the merits
of respondent's other arguments.
Decision will be entered
under Rule 155.
8We note that petitioner neither cites nor attempts to
distinguish the factually similar cases of McCarthy v. United
States, 806 F.2d 129 (7th Cir. 1986), and Estate of Gagliardi v.
Commissioner, 89 T.C. 1207 (1987).
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