Gruen v. Commissioner

OPINION.

Van Fossan, Judge:

The first issue for our consideration is whether the gifts in question were made in 1935 or 1937. Petitioners contend that the gifts were effected in 1935 because it was then that the rights of the donees as third party beneficiaries of the Katz and Gruen contract became vested. Respondent argues that the gifts were not completed until 1937, since it was not until that year that the donees received delivery of the property which was the subject of the gifts.

The elements essential for a valid gift are to be found in the following statement from Edson v. Lucas, 40 Fed.…