[Claim for Proceeds of Unpaid Treasury Checks]

The residuary legatees of the estate of the nephew of a deceased gold dealer filed a claim for the proceeds of 13 Treasury checks. The claimants alleged that the checks were a gift from the deceased payee to his nephew and that the nephew left the checks to them upon his death. The question before GAO was whether the named payee transferred or delivered the checks to his nephew with the intent to make a gift, or whether the facts of this case are legally adequate to permit payment. The deceased payee did not mention the checks in his will. His entire estate was left to his wife and her estate was left to her brother. The will of the deceased nephew neither mentions the checks nor how he gained possession. The claimants argued that the checks must have been a gift from the payee to his nephew, but they presented no evidence of this. GAO held that the mere fact of possession does not establish an inter vivos gift or other basis of entitlement, and the record contained no evidence of delivery of the checks by payee to nephew. Therefore, GAO found no basis to allow the claim, under either the Uniform Commercial Code or relevant State law. Accordingly, there is no basis for the Department of the Treasury to make payment to the claimants.