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§ 15.3 UNDIVIDED PORTIONS OF ENTIRE INTERESTS IN PROPERTYproperty reverts to the donor or to her estate; there is no right of reversionas to the Y Works or the Other Works. The IRS ruled that the donor and hersuccessors in interest, in retaining the Display Control Rights and thereversionary rights, have interests that are not “substantial,” in that theyare “largely fiduciary powers to be exercised in furtherance of the charitablepurposes” of the museum. 60 The IRS relied on the good museum practicestandard and the arbitration device to conclude that the possibility thatthe works of art will revert to the donor or her estate is so remote as to benegligible. 61 The IRS thus concluded that any gift that the donor made duringher lifetime of an undivided fractional interest in any work of the Collectionaccepted by the museum subject to the terms and conditions of theagreement will be deductible as a charitable gift.• An individual entered into an agreement under which he contributed thelong-term capital gains of selected futures contracts from his personalaccounts at a brokerage house and retained for himself the short-termcapital gains. For the most part, the selected contracts were sold on thesame day that the gift was made and the portions of the proceeds representingthe long-term gains were transferred to an account of a charitableorganization at the same brokerage house. The donor chose the futurescontracts to be donated according to the funding needs of the charity andthe amount of unrealized long-term capital gains inherent in the contracts.The IRS took the position that there was no deductible charitablegift because the transfer was a contribution of a nonqualified partial interestin property. 62 A court ruled, however, that the contribution was of anundivided portion of the donor’s entire interest in the futures contracts,and that he had donated only the portion of the contracts representinglong-term capital gain. 63• A surviving spouse is the trustee and beneficiary of a marital trust, whichpays him income for his life. A court order is to be obtained by which thistrust will be divided into two marital trusts. An election 64 will be made totreat all of the property in the two trusts as qualified terminable interestproperty. This individual will transfer his income interest in one of thesetwo trusts to a charitable organization, with the trust thereupon terminatingso that the property in it will be distributed outright to the charity.The IRS ruled that this individual will contribute an undivided portion ofhis entire interest in the marital trust for charitable purposes. 65• A married couple each owned an undivided one-half interest in certainworks of art. They established an art collection at a public charity consistingof these and other previously contributed art works. They proposed to60 Priv. Ltr. Rul. 9303007 (revoking and replacing Priv. Ltr. Rul. 9152036).61 See § 10.4(b).62 See § 9.20.63 Greene v. United States, 864 F. Supp. 407 (S.D.N.Y. 1995). This case and its progeny are discussed in greaterdetail in §§ 3.1(g), 4.8, 9.11.64 IRC § 2056(b)(7).65 Priv. Ltr. Rul. 200122025. 513