Assume the same facts as in Problem 42, except that Gordon and Fawn are husband and wife (not brother and sister).

a. What are the gift tax consequences in 2012?

b. What are the estate tax consequences in 2018?

c. Under part (b), would your answer change if it was Fawn (not Gordon) who died in 2018? Explain.

Problem 42

In 2012, Gordon purchased real estate for $900,000 and listed title to the property as "Gordon and Fawn, joint tenants with right of survivorship." Gordon predeceases Fawn in 2018 when the real estate is worth $2.9 million. Gordon and Fawn are brother and sister.