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T.C. 789, 798 (1948). Property ownership, in turn, is determined
by State law, consistent with the overarching principle that
State law creates legal rights and property interests while
Federal law determines how the rights and interests so created
shall be taxed. Morgan v. Commissioner, 309 U.S. 78, 80-81
(1940).
B. State Law Regarding Joint Accounts
The parties to the instant litigation do not dispute that
the relevant State law for purposes of this case is that of
Texas. In 1979, Texas adopted provisions derived from article VI
of the Uniform Probate Code governing multiple-party accounts,
codified at Tex. Prob. Code Ann. secs. 436-449 (Vernon 2003).
See Stauffer v. Henderson, 801 S.W.2d 858, 862-863 (Tex. 1990).
As pertinent here, Tex. Prob. Code Ann. sec. 436 defines
“Multiple-party account” to include “a joint account” and “Joint
account” to mean “an account payable on request to one or more of
two or more parties whether or not there is a right of
survivorship.” Accounts at brokerage firms are expressly placed
within the scope of the statutory scheme. Id. Tex. Prob. Code
Ann. sec. 437 then clarifies the reach of the ensuing provisions,
as follows:
Sec. 437. Ownership as Between Parties and Others
The provisions of Sections 438 through 440 of this
code that concern beneficial ownership as between
parties * * * of multiple-party accounts, are relevant
only to controversies between these persons and their
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