Reply to this post : Mary Robertson should be responsible for paying the gift ta

Reply to this post :
Mary Robertson should be responsible for paying the gift tax. In the Estate of Emerson Winkler (1997), the court found that there was already a verbal agreement as to the partnership of the family and no formal written agreement was necessary. Since the family jointly contributed to the purchase of the tickets and not just Mrs. Winkler, a partnership was formed. The exact nature of the division of the lotto ticket was not decided until after the winning ticket was announced. Because the family contributed to the buying of the tickets, Mrs. Winkler did not give any property to the children but rather divided the winnings within the partnership.
In a similar case to Mary’s, Tonda Dickerson (2012) received a winning lotto ticket as a gift from a customer at the Waffle House in Alabama. Her coworkers tried to collect part of her winnings because of a verbal agreement. Being in the state of Alabama, the claimants had presented enough evidence to prove that the oral agreement existed, but the agreement was unenforceable because it was founded on gambling consideration in opposition to Alabama Code § 8-1-150. In this case, the court ruled that the family agreement that consisted solely of offhand statements throughout the years with no pattern, pooling of money, or predetermined sharing percentages did not constitute a legitimate, enforceable agreement.
In Mary’s case, she had a verbal agreement with the other waitresses for dividing lotto winnings that she did not uphold. While she did have a family agreement, the agreement did not constitute what a “substantial amount” of money consists of. Her family did not contribute to the purchase of the lotto ticket, and the corporation was not formed until after she had won. Her disregard for the verbal agreement that she held with her IHOP coworkers is immoral. Since the waitresses had an agreement, she should have upheld her end of it. Romans 13:7 says, “Pay to all what is wed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed” (English Standard Version, 2016). Raabe et al. (2022) state that the joint ownership of a gift depends on the consideration furnished by each contributing party for the acquired ownership interest (p. 18-3a). Mary’s family did not contribute to the acquired ownership interest, so the property is considered a gift and is subject to the gift tax.
Contracts founded upon gambling consideration void; recovery of money paid or things of value delivered, Ala. Code § 8-1-150 (2006).
English Standard Version. (2016). Crossway (Original work published 2001)
Estate of Emerson Winkler, 36 TCM 1657, T.C.Memo. 1997-4.
Tonda Lynn Dickerson, 103 TCM 1280, T.C.Memo. 2012-60.
Raabe, W. A., Young, J. C., Nellen, A., Hoffman, W. H. (2022). Corporations, Partnerships, Estates, & Trusts (45th ed.). Cengage Learning, Inc.

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