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 during 2013 are summarized below Asset Transfer James Ella Condominium located in Conroe (TX) acquired in 1999, cost $1 2 million, to Benjamin, Michael, and Olivia as equal tenants in common 1,900,000 1,900,000 built inOffice building, located in Round Rock (TX) built in 2001, cost $1 8 million, to Benjamin, Michael, and Olivia as equal tenants in common 2,300,000 2,300,000 than Vacation ranch in Bandera (TX) inherited by James from his father in 1996, value then $900,000, to Benjamin, Michael, and Olivia as equal joint tenants with right of survivorship 2,600,000 0 Ella used her separate property to reimburse her father (Alan Roberts) for his heart bypass operation 0 82,000 Paid for daughters (Olivias) 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)

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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

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 during 2013 are summarized below.

Asset Transfer	James	Ella
Condominium located in Conroe (TX) acquired in 1999, cost $1.2 million, to Benjamin, Michael, and Olivia as equal tenants in common.	1,900,000	1,900,000
built-inOffice building, located in Round Rock (TX) built in 2001, cost $1.8 million, to Benjamin, Michael, and Olivia as equal tenants in common.	2,300,000	2,300,000
than Vacation ranch in Bandera (TX) inherited by James from his father in 1996, value then $900,000, to Benjamin, Michael, and Olivia as equal joint tenants with right of survivorship.	2,600,000	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).