DIVISION OF REVENUE
	
PROPOSED TECHNICAL INFORMATION MEMORANDUM 97-6

DATE: 	NOVEMBER 12,  1997

SUBJECT:	GIFTS IN CONTEMPLATION OF DEATH

CONTACT:	William M. Remington, Director of Revenue
		Division of Revenue
		820 North French Street
		Wilmington, Delaware 19801
		(302) 577-8686
		email: wremington@state.de.us  	


        The following shall constitute Regulations of the Division of Revenue 
        
        as authorized in 30 Del. C. § 354 and 563.  The comment period shall 
        
        run from December 1, 1997, to December 31, 1997, and comments should 
        
        be addressed to William M. Remington at the above address.  Thirty Del. 
        
        C. § 1306(a) provides for inclusion in the gross estate of "the value 
        
        of all taxable gifts, as defined in § 1401 of this title, made by the 
        
        decedent in contemplation of death."

        Subsection (b) of that section provides that taxable gifts made within 
        
        six months of death are presumed to have been made in contemplation of 
        
        death and also provides that no gifts made more than six months before 
        
        death are to be treated as having been made in contemplation of death.

        The state gift tax is repealed effective for gifts made on or after 
        
        January 1, 1998. 71 Del. Laws. ch. 130.  The legislative history of 
        
        ch. 130 does not reveal an intent to alter the treatment of gifts 
        
        made in contemplation of death and in fact manifests an intention 
        
        that such treatment continue for purposes of the state inheritance 
        
        tax.  Thus, gifts that are taxable for federal gift tax purposes 
        
        (i.e., those in excess of the $10,000 annual per donee exclusion) 
        
        shall be presumed made in contemplation of death and thereby included 
        
        in the gross estate if they were made within six months of the donor's 
        
        death.


        This Regulation unless subsequently changed or withdrawn shall be 
        
        effective for gifts made after December 31, 1997.