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to make the cash gifts authorized by the order. On October 16,
1995, decedent's estate made the cash distributions authorized by
the order. Decedent's estate's tax return claimed that the gifts
made pursuant to the order, but after decedent's death, were not
includable in decedent's gross estate. In the notice of
deficiency issued by respondent in the instant case, respondent
determined that those gifts were includable in decedent's gross
estate for estate tax purposes.
Section 2001 imposes a tax on the taxable estate of every
decedent who is a citizen or resident of the United States. The
taxable estate is defined as the gross estate less deductions
allowed. See sec. 2051. Section 2033 provides that a decedent’s
gross estate includes “the value of all property to the extent of
the interest therein of decedent at the time of his death.”
In the instant case, we must decide whether the gifts made
to decedent’s daughter-in-law and grandchildren pursuant to the
order, but after decedent's death, are includable in decedent's
gross estate. Respondent argues that such gifts were incomplete
on the date of decedent’s death and, accordingly, should be
included in decedent’s gross estate. Petitioner argues that on
the date that decedent's guardian-conservator conveyed the real
property to C. Ronald Lambert and Charlotte Lambert as tenants in
common, decedent's guardian-conservator breached a fiduciary duty
to the remaining beneficiaries covered by the order. That
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