Estate of Haines B. Gaffner - Page 4




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               At the time the respective petitions in these cases were               
          filed, Mary Ellen Gaffner (Ms. Gaffner), the personal representa-           
          tive of the Estate of Haines B. Gaffner, Deceased (Mr. Gaffner),            
          in the case at docket No. 5522-00, and the petitioner in the case           
          at docket No. 5523-00, resided in Seattle, Washington.                      
               During the years at issue, Mr. Gaffner (until his death in             
          1996) and Ms. Gaffner, who were married, owned an 18-unit apart-            
          ment complex located at 900 Warren Avenue North, Seattle, Wash-             
          ington (Warren Avenue rental property).  During 1996, petitioners           
          received rent from the Warren Avenue rental property totaling               
          $108,000.                                                                   
               During 1996, Ms. Gaffner, either in her individual capacity            
          or in her capacity as executrix of the estate of Mr. Gaffner,               
          paid the following attorneys the amounts shown:                             
                 Attorney                        Amount Paid                          
                 Donald A. Bailey          $12,116.59                                 
                 Hillis, Clark, Martin     12,367.50                                  
                 & Peterson                                                           
                 Shafer & Bailey           8,426.00                                   
                 Wilton S. Viall III       4,000.00                                   
               On February 2, 1996, First Interstate Bank of Washington,              
          N.A. (First Interstate Bank) paid a $10,000 check to Continental            
          Mortgage Company that was signed by Mr. Gaffner and that was                
          drawn on his account at that bank.  A notation on that check                
          stated:  “DEPOSIT ON HIGHLAND HOUSE MORTGAGE APPLICATION”.                  
               On April 19, 1996, Mr. Gaffner and Ms. Gaffner requested               






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