LO.4, 6, 7 In 2002, 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 2012 when the real estate is worth $2.9 million. Gordon and Fawn are brother and sister.

a. Did a gift occur in 2002? Explain.

b. What, if any, are the estate tax consequences in 2012?

c. Under part (b), would your answer change if it was Fawn (not Gordon) who died in 2012? Explain.