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On August 29, 1989, Janet's husband executed a Consent of
Spouse, pursuant to which he agreed to abide by the terms of the
partnership agreement.
On August 30, 1989, decedent's grandchildren by warranty
deed conveyed to their Cullison Enterprises partnership the land
decedent had transferred to them. This warranty deed, which had
been executed by them on August 30, 1989, was recorded by them on
September 8, 1989.
From late 1988 until August 29, 1989, decedent continued to
be the land's sole owner. Decedent was entitled to the rents
payable by tenants for their use of the land until that date, and
she was also liable for any real property taxes imposed covering
the period of her ownership up until that date.
From September 1, 1990, through January 19, 1992, decedent's
grandchildren never made any of the annual payments they owed to
decedent pursuant to the annuity agreement.
Decedent died on January 19, 1992, when she was 84 years and
2 months old. Neither decedent nor petitioner ever filed any
Federal gift tax returns.
During the examination of petitioner's estate tax return,
the Internal Revenue Service (IRS) estate tax examiner asked Mr.
Shadle (who was petitioner's attorney) to obtain and provide him
with an appraisal report concerning the value of the land
decedent had transferred to her grandchildren. As a result, Mr.
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