Question 1 1. John and Mane are married and live in your state. The deed conveying their property states, “to John A. Kowalski and Mae F. Kowalski, husband and wife, as joint tenants in common.” (a) Would this conveyance create a tenancy by the entirely in your state? (b) Cite our state statute, if any. …… (my state is California) 2. What five unities are necessary for the establishment of a tenancy by the entirety? Explain each one. 3. Which unity exists in tenancy by the entirety but not in joint tenancy? 4. Select a state that recognizes tenancy by the entirety (possibly your own state) and identify the type of tenancy created by the following conveyance according to the courts of that state. Each conveyance is to husband and wife with wording as indicated. Joint Tenancy Tenancy by the entirety Tenancy in Common “as tenants by the entirety” “as tenants by the entirety with the right of survivorship” “with the right of survivorship” “as joint tenants” “as tenants in common’ “ no other words, just to “husband and wife” Question 2 After reviewing freehold estates. Answer the following questions. Amy conveys by deed her lake cottage to ”Clare for life, then to Maxine for 20 years, then to Elizabeth and her heirs. 1. What of kind of estate does Clare have? 2. Who receives the property when Clare dies? 3. If Maxine dies before Clare, who receives the property on Clare Deaths? 4. Does Amy have a reversionary interest in the property? Explain 5. What interest does Elizabeth hold? 6. Two remaindermen are involved in the conveyance. Who are they and why are they so classified? 7. Do Elizabeth’s heirs have any interest in the property by this conveyance ? Problem This is the first of three tax returns that you will be preparing in this course. This first return will assess your ability to properly handle taxable transfers using the 2513 election to split the gifts. If tax software came with your text purchase, or if you have alternate tax software, you may use it to complete this assignment. If not, a fill-in 2013 709 PDF form can be found in Doc Sharing. Remember, you will be submitting (2) 709 forms, one for James A. Polk and one for Ella R. Polk. If you use the fill-in form in Doc Sharing, two forms are already included. All submissions for this assignment MUST be in PDF format. If you choose to use tax software, do not submit the tax software file. Save the tax return in PDF format, with your last name in the filename, and submit the PDF file. #1. James A. And Ella. R. Polk ages 70 and 65 are retired physicians who live at 13319 Taylorcrest street, Houston, Texas 77079. Their three adult children (Benjamin Polk, Michael Polk, and Olivia Turner) are mature and responsible persons. The Polks have heard that the Obama administration has proposed lowering the Federal gift tax exclusion from $5.25 million to $3 million. Although this change may not occur, the Polks feel they should take advantage of the more generous exclus ...

1. Question 1
1. John and Mane are married and live in your state. The deed
conveying their property states, “to John A. Kowalski and Mae
F. Kowalski, husband and wife, as joint tenants in common.”
(a) Would this conveyance create a tenancy by the entirely in
your state? (b) Cite our state statute, if any. …… (my state is
California)
2. What five unities are necessary for the establishment of a
tenancy by the entirety? Explain each one.
3. Which unity exists in tenancy by the entirety but not in joint
tenancy?
4. Select a state that recognizes tenancy by the entirety
(possibly your own state) and identify the type of tenancy
created by the following conveyance according to the courts of
that state. Each conveyance is to husband and wife with
wording as indicated.
Joint Tenancy
Tenancy by the entirety
Tenancy in Common
“as tenants by the entirety”
“as tenants by the entirety with the right of survivorship”
“with the right of survivorship”

2. “as joint tenants”
“as tenants in common’
“ no other words, just to “husband and wife”
Question 2
After reviewing freehold estates. Answer the following
questions.
Amy conveys by deed her lake cottage to ”Clare for life, then to
Maxine for 20 years, then to Elizabeth and her heirs.
1. What of kind of estate does Clare have?
2. Who receives the property when Clare dies?
3. If Maxine dies before Clare, who receives the property on
Clare Deaths?
4. Does Amy have a reversionary interest in the property?
Explain
5. What interest does Elizabeth hold?
6. Two remaindermen are involved in the conveyance. Who are
they and why are they so classified?
7. Do Elizabeth’s heirs have any interest in the property by this
conveyance ?
Problem
This is the first of three tax returns that you will be preparing in
this course. This first return will assess your ability to properly

3. handle taxable transfers using the 2513 election to split the
gifts. If tax software came with your text purchase, or if you
have alternate tax software, you may use it to complete this
assignment. If not, a fill-in 2013 709 PDF form can be found in
Doc Sharing. Remember, you will be submitting (2) 709 forms,
one for James A. Polk and one for Ella R. Polk. If you use the
fill-in form in Doc Sharing, two forms are already included.
All submissions for this assignment MUST be in PDF format. If
you choose to use tax software, do not submit the tax software
file. Save the tax return in PDF format, with your last name in
the filename, and submit the PDF file.
#1.
James A. And Ella. R. Polk ages 70 and 65 are retired
physicians who live at 13319 Taylorcrest street, Houston, Texas
77079. Their three adult children (Benjamin Polk, Michael Polk,
and Olivia Turner) are mature and responsible persons. The
Polks have heard that the Obama administration has proposed
lowering the Federal gift tax exclusion from $5.25 million to $3
million. Although this change may not occur, the Polks feel
they should take advantage of the more generous exclusion
available under existing law. Thus, in 2013, the Polks make
transfers of many of their high value investments. These and
other gifts made 2013 are summarized below.
Asset Transfer
Donor
James
Ella
Condominium located in Conroe (TX) acquired in 1999, cost
$1.2 million, to Benjamin, Michael, and Olivia as equal tenants
in common.
$1,800,000
$1,800,000
Office building, located in Round Rock (TX) built in 2001, cost

4. $1.8 million, to Benjamin, Michael, and Olivia as equal tenants
in common
$2,200,000
$2,200,000
Vacation ranch in Bandera (TX) inherited by James from his
father in 1996, value then $900000, to Benjamin, Michael, and
Olivia as equal joint tenants with rights of survivorship.
$2,400,00
-0-
Ella used her separate property to reimburse her father (Alan
Roberts) for his heart bypass operation
$ -0-
$82,000
Paid for daughter’s (Olivia’s) wedding to John Turner
$20,000
$20,000
James used his separate property to purchase a new automobile
(BMW) as a graduation present ( from medical school) for his
favorite niece (Carol Polk)
$42,000
-0-
Prepare 2013 gift tax returns (Form 709) for both of the Polks.
A§ 2513 election to split gifts is made. The Polks have made no
taxable gifts in prior years. Relevant Social Security numbers
are 123-45-6789 (James) and 123-45-6788 (Ella).
#2.
Natalie Bryan, a widow who lives at 425 Flathead Way,
Kalispell, Montana 59901, has three adult children (Daniel
Bryan, Amanda Green, and Samantha Cruz). During 2013,
Natalie makes the following gifts to the children.
To Daniel: Office building in Helena acquired in 2001 at a cost
of $800000, current value $1.8 million.
To Amanda: Rental cabin in Whitefisjh inherited in 1999 (value
$900,00) from her father, current value $1.9 million.

5. To Samantha: Vacation lodge on Flathead Lake acquired in
1995 at a cost of $800,000, current value $1.7 million.
Prepare a 2013 gifts tax return ( Form 709) for Natalie (SSN
123-45-6787). Natalie made no taxable gifts in prior years.
#3.
Harriet C. Harper, age 74, died as a result of an automobile
accident on June 6, 2013. At the time of her death, Harriet lived
at 1520 Marlin Drive, Clearwater, FL, 33758. She was
predeceased by her husband. John W. Harper, who died in 2001.
Harriet is survived by her two adult children. Travis Harper
and Hannah Baker. Information regarding Harriet’s estate is
summarized below.
· John’s will established a marital deduction trust with $1
million of assets. Under the terms of the trust, Harriet received
a life estate with the remainder passing to their children. (i.e.,
Travis and Hannah). To obtain a marital deduction for John’s
estate, his executor made a QTIP election. On June 6, 2013, the
trust had a value of $2 million. During 2013, the trust assets
are distributed to Travis and Hannah.
· Harriet owned three insurance policies with Falcon
Assurance Company-one on her life and one on the life of each
of her children. All policies have a maturity value of $100,00;
all name Harriet or her estate as the beneficiary. As of June 6,
2013, the policies on Travis and Hannah each had a value of
$40,000.
· A tract of undeveloped land in Pinellas County (FL) was
purchased by Harriet as an investment in 2002 for $300,000. To
help finance the purchase, Harriet obtained mortgage funds
from Tampa Savings and Loan. As of June 6, 2013, the land was
worth $900,000, and Harriet owed $100,000 on the mortgage.
· Rental beach cottages in Destin (FL) were inherited from John
and worth $1 million on June 6, 2013. The cottages had value of
$600,000 when John died; his original cost is unknown.
· A family vacation lodge in Union (SC) was held as joint

6. tenants with right of survivorship in the names of Harriet
Harper, Travis Harper, and Hannah Baker. The property was
purchased in 2002 for $400,000; $200,000 was provided by
Harriet and $100,000 was furnished by each of her children. On
June 6, 2013, the lodge was worth $1 million.
· Harriet’s Marlin Drive residence is owned by her. It had a
value of $500,000 on June 6, 2013.
· The accident that fatally injured Harriet was caused by the
delivery truck of a national soft drink bottling company. Not
only was the truck in disrepair, but the driver was charged with
DUI. To avoid the adverse publicity of lawsuit involving the
obvious gross negligence, the corporate office offered to settle
any claims. After careful deliberation, Harriet’s co-executors
(Travis and Hannah) signed a release. In return, the estate
received $400,000 in cash plus payment of all medical
expenses. Of the medical expenses, the doctors and hospital
were paid directly by the building company. The settlement was
received by the estate before it was closed and the Form 706
filed.
· Other assets owned by Harriet as of June 6, 2013 included:
Checking account at Dunedin State Bank
$ 17,500
State of Georgia bonds (interest accrued to date of death)
105,000
Personal and household effects
60,000
Federal income tax refund receivable (for tax year 2012)
2,000
· Liabilities and expenses in connection with the administration
of the estate include:
Harriet’s credit card debt and household bills
(e.g., utilities, gardener)
$13,000
Federal income tax ( January 1, 2013, to June 6, 2013)

7. 27,000
Funeral expenses
8,000
Attorney’s fees
12,000
Accounting fees
10,000
Appraisal fees and court costs
6,000
Unpaid pledge to Clearwater First Methodist Church Building
Fund ( paid by the estate during its administration)
20,000
· Because Travis and Hannah had experience in handling their
father’s estate. Harriet’s will designated them as co-executors
of her estate. The probate of the Estate of Harriet C. harper is
completed December 16, 2013. Travis and Hannah are the sole
heirs.
Prepare an estate tax return (Form 706) for Harriet, In this
regard, make the following assumptions.
· Disregard any request for information that is not available
· Some deductions require a choice between the income and
estate taxes (Form 706 or form 1041) and cannot be deducted
twice . Resolve all choices in favor of Form 706.
· Harriet had made no taxable gifts in prior years.
· Relevant SSNs
Name
SSN
Harriet Harper
123-45-6781
Travis Harper
123-45-6782
Hannah Baker
123-45-6783