Sherrel and Leslie Stephen Jones - Page 9




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          subject matter of the gift.  Frazier v. Okla. Gas & Elec. Co., 63           
          P.2d 11, 13 (Okla. 1936).  In order to divest himself of                    
          ownership and dominion over the subject matter of the gift,                 
          petitioner (the donor) must legally own the property in issue.              
          See Pettit v. Commissioner, 61 T.C. 634, 639 (1974) (“A ‘gift’              
          has been generally defined as a voluntary transfer of property by           
          the owner to another without consideration therefor.”  (Emphasis            
          added.)).  Beneficial ownership is required.  Bare legal title              
          does not control.  See Estate of Davenport v. Commissioner, 184             
          F.3d 1176, 1182-1185 (10th Cir. 1999), affg. T.C. Memo. 1997-390;           
          sec. 25.2511-1(g)(1), Gift Tax Regs.                                        
               Respondent contends that petitioner did not own the                    
          materials relating to his defense of McVeigh in his trial for the           
          Oklahoma City bombing and thus could not have divested himself of           
          ownership in order to effect a valid inter vivos gift of those              
          materials.  Petitioners assert that, under Oklahoma law,                    
          petitioner legally owned the materials in issue and that the                
          materials constituted petitioner’s personal property.                       
               The parties have not cited, and we have not found, any case            
          in Oklahoma or any other jurisdiction that addresses directly the           
          ownership of materials in the possession of an attorney that are            
          related to the representation of his client.  The ownership of              
          client files is apparently an issue of first impression under               
          Oklahoma law.  However, Oklahoma State law in related areas                 







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