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ownership of the property without having the property
included in their estates on their death, or when they
transfer the property by gift to their children.
On June 1, 1988, decedent wrote a letter to Mr. Newman.
Decedent wanted to make a codicil to his will. Decedent decided
to make a $10,000 gift each year to Barney, Barney’s wife, “Ruth
M.”, and Bar. Decedent informed Mr. Newman that Mr. Joseph, who
decedent identified as his C.P.A., had explained the $10,000-per-
year gifts and the tax consequences to him. Bar intended to use
the $10,000-per-year gift to help him (Bar) maintain Hundred
Acres after decedent died. Decedent, however, felt that the
$10,000-per-year gift would not give Bar enough money to maintain
Hundred Acres. Decedent decided that the other “heirs” did not
deserve equal shares of his estate, so he wanted to change his
will to distribute his residuary estate as follows: 25 percent
each to Bar and Barney, 10 percent each to two of decedent’s
other grandchildren, and 7.5 percent each to four of decedent’s
great-grandchildren. Decedent decided on these amounts because:
“As of now, there will be approximately $2,000,000 left after
taxes and costs. This is $2,000,000 ‘residual estate.’ Barney
and Bar get 25%, or $500,000.” Decedent believed that Bar could
invest his inheritance in a bond yielding 7 to 8 percent, and
this would provide Bar enough money to pay the taxes and upkeep
on Hundred Acres.
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