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Home My WebLink AboutOC1968-0030 - ESTATE OF JOHNSTONl LAST WILL AND TESTAMENT--- I,JOHN A.JOHNSTON,of Canonsburg,County of washington, and State of Pennsylvania,being of sound mind and memory,do hereby make,publish and declare this to be my Last Will and Test~me~t,in manner and form following,hereby revoking any I,'.- Will or Wills heretofore made bi me.~ FI;RST:-I direct that all my just debts,funeral expenses, .1;-transf~r and inheritance taxes,and expenses of administration of my estate,be fUlly paid and satisfied,as soon a s convenient- Ilymaybe,after my decease. SECOND:,One-third of all the rest,residue and remainder of ~y 'estate,real,personal,and mixed,I give,devise and bequeath to my son;John A.Johnston,Jr.However,if said John A.Johnston,Jr.predeceases me,then said share shall be divided equally among the children of·said John A.Johnston,Jr. THIRD:--.One-third .share of "all t he rest~residue'and remainder of my estate,real,personal and mixed,I give,d~vise ..,-.•1.- -• and bequeath to my son;Wesa.ey Greer·Johnst.on.However,if said Wesley Greer Johnston predeceases me,then said share shall be divided equally among the childr~n of said ~esley Greer Johnston. FOURTH: .,one-third share 0f all the r est,residue and remainder of my estate,real,personal and mixed,Igive,devise and bequeath to my son;David oak~~Johnston.However,if said David oaks Johnston predeceases ~e,then said share shall be divided equally among the children of said David Oaks Johnston.~ FIFTH:I do hereby make~constitute and appoint JOHN A.JOHNSTON,JR.,,WESLEY GREE~'JOHNSTON an~DAVID OAKS JOHNSTON to be my Executors of this my Last Will and Testament and I,. do hereby expressly excuse all of'them from riling bond. IN WITNESS WHEREOF,I,John 'A.J0hnston,the Testator above named,have hereunto subscribed my name and·affixed my ,- .~~ !> seal,the 15 ~day of January ; 1965. John A.Johnston (SEAL) John A•.Johnston. " ~.. ,I '"Qto'mmouUlra1t~of JrUUSYlnauta.}Ii )lIas!fhtglrltf-:Qtiiitrity.ss.--."------- KNOW ALL MEN BY THESE PRESENTS:Whereas,at W~shington,in the County aforesaid Iv' on the lOth day of February",A.D.:19 66 ,before me, .Josephine.M.Douglas ,Register for the Probate ;of Wills and Granting Letters of Administration in and for the County of Washington,in the Commonwealth of Pennsylvania, the last Will and Testament of JOHN A.JOHNSTON late'of·.,Ca.nonsburg,in the County aforesaid,deceased, ~~(a true copy whereof is to these presents annexed),was duly admitted to probate;and JOHN A.'JOHNSTON,JR.,WESLEY GREER JOHNSTON and DAVID OAKS JOHNSTON the ~xecutor S in .said Will and Testament named,having appeared.before me,and taken and subscribed the oath of office prescribed by law; NOW,THEREFORE,I,Jo~ephine M.Dougla.s.,R~gister as -aforesaid,do grant these LETTERS TESTAMENTAR'¥t,unto ~he s~id JOHN A.-JOHNSTON.JR.,WESLEY GREER JOHNSTON and DAVID OAKS JOHNSTON committing unto them'the administration of all and si'ngular the goods and chattels,rights and credits,which were of said 'deceased,and requiring them ·to exhibit a true and perfect inventory ~hereof into th~Regi;ter's Office,at Washington,within ninety ·days from the dat~hereof,~nd to render a ~just and true acc~unt of s·aid :administration at the expiration of six months from the dale -hereof,and to regard and comply with the provision;s of the laws of this ·Commonwealth relating to inheritance taxes. '>0<-IN TESTIMONY WHEREOF,I have hereunto set my hand and the seal of said Office at Washington,this ten t h February in the year of our Lord one thousand nine hundred and sixty-six: ....'A~ .........~.2 :_~..-~-~--~~---=-Re~ner . \,-j......,..,;..':.~~.~:';.''", tN ~~,:' .,.'1 , I .t lo~~r"~o §. tilHbt2Ij j !i,: j:i III(J) -l>-l'Ill oTI .,:..":.,.; r' '..-~./.' .'i... Signed,sealed,published and decl,aredby the,above named John A.Johnston,as and for his Last Will and Testament,In ,, the presence of us,Who have hereunto subscribed our names at I his request as witnesses ~hereunto,in the presence of said Testator,and of each other. ~t,. ,. ," .:~. Jerry Dichak Andrew W.,Cummins ~".'"","'" '"l -;...:.~- ..·.Ie.. " ""''':':~ I;~ ..;:,"..... ~..'- " •,~ O' ~.....' I ."1\,.", -".,\ 'i.: fI"I, ?III~, '/// -'/'\;'....-: ..-~-,- 't; • •f ~ " C' \,\1",\, ".. -:./' The Court is respectfully requested to determine proper distribution in this estate. .~W ~_._.:~ Counsel "for Accountant STATE OF PENNSYLVANIA, WASHINGTON COUNTY,l 55: The within named Accountant s being duly sworn according to law,depose and say .,as stated is true and correct as ~.~~y verily believe. , that the above account a.~........ John A.nston,. ---~~G~~---------- Dl~kSdJ~t~ I do certify that I have given legal notice to all persons concerned of the filing of the within account in the manner prescribed by Statute and Rule of Court,as evidence by proofs thereof filed to No I.~.'-.r.t2-t2... Witness my hand and official seal thiS 1"~. A/J._._IJ IJ>.day of :l.~19 . .......~~. ~_.,.•,,-'.Register.of W.ills .. Washington County,ss: ""~"Jdayof·,".'19 ; . hi;~:::~- ,Canonsburg,Washington Co.,Pa. .,~y,Commission Expires November 16,197P ,'iF Sworn and sub~c~i'qed be·fore me this ....L.~..., I oz .......0 ...~0...0I'l 0 0~i ,r:'r Q)0 b'.,ICJ .Q ....CJ I l._0 ...0-<.:Z "";~'"0,~!~,...,!tl...Z Z Ul 't:l Q) Q)6~(J)g H ... Z 0 ..,....-")f'c,'1 I'l..:Q)0r:<.(J)Z~::r:(J)+J •••oJ f _~J,1:,',:.,Ul .t:j.c:--Q)0 z ~i 0 z ~...,...,..::J ,J ...186Ij::r:u P-ofil..-l (J)0 OJ I"...><Eo<~,,..I'l-<Ij lU Z p:;Ij X :,,.;::l fil Eo<s::S riI riI '..;"':~4$0CJ 't:lrn.r-l riI (J).;CJ I'lfilojojr::x:~Ij p:;~, C9 -..>;~"d ,i ,('..;I'l ...~~:.1.,,-.~:a ~Q)Z '0 .....9 ...UlSs::r::x::>i .~...'610ojlUriIt:l ...Q)S Q) Ij Z H H ~.Q .!::P:: +J ::r:(J):>...0 .... Ul 0 riI r::x:I'l I'l0HIj~t:l 't:l CJ .r-l I'l a;...0~<11 ........ 4>,~ I ,I.'"",,' Ul...=oj...=;::l0CJCJ <11 (J)hZ0.... H »ri~Q) I'l...::>0 ~\...,...C)... <11 t~~ ~1 riI ~p:;'J-.~.......... .,~ •.~r "J The First and Final Account of JOHN A.JOHNSTON r JR., WESLEY GR~ER JOHNSTON and DAVID OAKS JOHNSTON,Executors of the Estate of John A.Johnston,deceased,late of Canonsburg, Washington County,Pennsylvania. The Accountants are charged as follows: To amount of Inventory and Appraisement Wightman Manor Nursing Home Refund Refund on Home Ownerts Policy Refund on Liberty Mutual Fire Insurance Refund on Sentry Fire Insurance Dividends from Phillips Petroleum Dividends from General Motors Dividends from Standard Oil of N.J. Dividends from Du Pont Dividends from General Electric Dividends from Socony -Mobil Oil Rent from Lucille Harsha Rent from Edith J.Laib $187844.46 314.80 57.00 431.59 153.94 165.32 1301.30 660.00 287.50 65.00 120.80 280.00 225.00 Rent from Mary Malone Rent from John W.Kerrigan Rent from Western Auto Rent from Alice Gregory Interest from Mellon Bank $75.00 65.00 250.00 65.00 708.00 Loss on~sale of Stocks Less Credits Less Partial Distribution to: John A.Johnston,Jr. Wesley Greer Johnston David Oaks Johnston Balance for Distribution 42409.95 42409.95 42409.95 $193069.71 17126.84 $175942.87 37710.64 $138232.23 127229.85 $11002.38 THE ACCOUNTANTS CLAIM CREDITS OUT OF THE ASSETS OF THE ESTATE TO-WIT: , 2-14-66 2-14-66 2-14-66 2-14-66 2-26-66 2-26-66 2-26-66 2-26-66 3-1-66· 3-1-66 3-1-66 3-7-66 3-7-66 3-8-66 3-8-66 3-9-66 3-9-66 3-9-66 3-11-66 3-11-66 3-11-66 3-11-66 3-14-66 3-19-66 3-10-66 3-17-66 Columbia Gas Co. Columbia Gas Co. Columbia Gas Co. •General Heating Co. Wightman Manor West Penn Power Co. General Heating Co. Oak Spring Cemetery Co. Palombi Brothers Borough of Canonsburg Borough of Canonsburg Betty Edwards Sentry Insurance Co. H.C.Mollenauer F.J.Buckley,TaxCollector .F.J.Buckley,TaxCollector Western Auto W.Leonard Griffith Postmaster Liberty Mutual Columbia Gas columbia Gas columbia Gas Robert Hensel Co. West Penn Power Co. Mellon Bank Mellon Bank Gas Bill Gas Bill Gas Bill Repair Nursing Home Electric Service Call Use of Chapel Sidewalk Repair Sewer Service Sewer Service Cleaning Insurance Ice Removal 1965 Borough Tax 1965 Borough Tax Light Bulbs Funeral Stamps Fire Insurance Gas Gas Gas Tax Copies Electric Bank Book Service Charge $36.00 42.00 3.00 7.00 557.59 15.70 6.00 90.00 295.00 7.79 4.87 20.00 165.00 10.00 92.26 411.08 .72 1241.00 5.00 345.04 3.00 36.00 42.00 10.44 15.67 5.82 2.49 3-26-66 3-26-66 3-31-66 Downey P.Lemon Vittefs Hardware Josephine Douglas,Agent Rubbish "For Sale"Sign Pa.Inheritance Tax on Account $45.00 3.65 2850.00 4-1-66 Richard DiSalle Transfer Stamps on deed to Elmer Du Carme and ~ of 1966 Taxes 1193.87 4-2-66 4-5-66 4-5-66 4-7-66 4-9-66 4-12-66 4-16-66 4-21-66 4-21-66 4-26-66 4-26-66 5-3-66 5-10-66 5-14-66 5-17-66 5-18-66 6-4-66 6-4-66 6-14-66 6-14-66 6-14-66 caroselli and Bobble Internal Revenue Service Gordon Office Equipment Betty Edwards Columbia Gas Peter DeVitis Columbia Gas Citizens Water Co. Borough of Canonsburg Sentry Insurance Co. Citizens Water Co. w.Leonard Griffith Columbia Gas West Penn Power Borough of Canonsbl rg Backrach-sanderbeck Gaydos Monument Russell Marino,Co.Treas. .columbia Gas Andrew G17a ytok,Jr.o Zeman &Z.eman Plumbing 1965 Gift Tax Binder Cleaning Gas Rubbish Gas Water Sewer Insurance Water Balance of Funeral Gas Electric Sewer Accounting Service Grave Marker Personal Property Tax Gas Part of 1966 Taxes Transfer Stamps on deed to Andrew Graytok,Jr. 52.03 21.00 11.03 30.00 36.00 19.50 283.81 5.94 4.43 5.15 11.66 56.00 36.00 12.18 8.15 225.00 80.00 182.34 36.00 151.36 400.90 6-16-66 Downey P.Lemon Rubbish $35.00 6-25-66 6-25-66 6-25-66 2-6-67 2-9-67 2-9-67 2-9-67 2-20-67 2-20-67 2-21-67 4-25-67 6-3-67 Citizens Water Co.Water 7.97 Citizens Water Co.Water 9.72 Columbia Gas Gas 107.44 A.W.Cummins Re-imbursement for cost advanced 96.00 Mt.Lebanon Office Equipment Binder 6.41 Barbara Kielman Recording Records 15.00 Whitman Stationery Supplies 4.99 John A.Johnston/Jr.Re-imbursement for .costs advanced 3.47 Internal Revenue Service Federal Estate Tax 20947.10 A.W.Cummins Attorney fees 7000.00 Bachrack -Sanderbeck Accounting 125.00 Russell Marino/Co.Treas.Personal Property Taxes 48.07 11-20-67 11-20-67 A.W.Cummins Josephine Douglas Register of Wills Re-imbursement for further costs advanced 29.50 Filing Costs 43.50 $37710.64 , i-~Washington County Reports Washington,Pennsylvania (PUBLISHED BY WASHINGTON COUNTY BAR ASSOCIATION) PROOF OF PUBLICATION Estate Notices The Register of Wills has granted letters. testamentary or of administration,in the following estates.Notice is hereby given to all persons indebted thereto to make payment without delay and to those hav- ing claims or demands to present t:hem for settlement to the Executors or Admin- istrators or their Attorneys. • • • •••• •• • • • • • ••• In compliance with the Newspaper Advertising Act of May 16,1929,P.L. 1784 Sec.3,paragraphs (3)and (25). COUNTY OF WASHINGTON) STATE OF PENNSYLVANIA (SS. Personally appeared before me,a Notary Public in and for said County and Commonwealth,CHARLES C.KELLER,who,being duly sworn,deposes and says:that he is the Editor of the WASHINGTON COUNTY REPORTS,the official legal periodical for said Washington County,publis'hed weekly having its place of business at Washington,Washington County,Pennsylvania,and is act- ing as its agent in t'his behalf;that the said WASHINGTON COL'NTY REPORTS was established on March 31,1920,and was,designated as the official legal publication for Washington County,Pennsylvania,by order of the several courts of said County,dated November 11,1920;that the printed notice or adver- tisement attached hereto is a copy of a notice or advertisement,exactly as printed or published,which appeared in the said legal periodical in its regular issues on the following dates: ............p..e.b.r.y.a.r.y....l1.,....24.•.............................. ............Ma.r.ch 3.•....1966 . .....~~:of...~~~!-:.t\,196.~.....,. ...../..~~&~-M"tory Public ~ I<Ai"E,.WJE C.YM~otary Publio WaShington,\\:as~liJlgton Co.,Pa. My CommIssIOn Expir,es November 1,1969 JOHNSTON,JOHN A.,Dee'd. Late of Canonsburg,WashingtonCounty,Penna.Ex'eeutors:John A.Johnston J'r~~y.,....Q,.e.er_,[ohn!lto.'!'~l!-vid'Oaks Johnston,1270 Washington Road 'Pittsburgh,Penna.' Attorney:Andrew W.Cummins Law,-&Finance Bldg.,Canonsburg,Pa. '. . " '. .(,.\",," ,..I ......-...- 4.,:,,.~ .) , /. \ •,\THE.DAILY NOTES CANONSBURG,PA. PROOF OF PUBLICATION In compliance with the Newspaper Advertising Act of May 16,1929,P.L.'1784, Sec.3.paragraph (3)and (25). State of pennSYlVania}. County of Washington ss. Personally appeared before me,a Notary Public in and for said county and state, _______RQJ~.~l Z_~.P._ay-,who being duly sworn,deposes and says:that ____she is thebo_okk.e_ep_eilY the Notes Publishing &Printing Co.,a Penn- sylvania corporation,and its agent in this behalf:that the said company is the pub- lisher of The Daily Notes,published daily except Saturday and Sunday,having its place of business at Canonsburg,Washington County,Pennsylvania;that the said Daily Notes was es:tablished August 1,1875;that the printed no:tice or adver!tisement,attached hereto is a copy of a notice or advertisement,exactly as printed or published,which appeared in the said newspaper in its regular issues on the following dates: ___l'eQ.rng..1'.Y__..l!t_,E_eJ:trn.9--_r..Y 21_'-F_~Q;n1,_?_:IT ~lt,~9_§.§.__: _ EXECUTORS'NOTICE Elstate of JOHN A..;OHN·STONdeceased,late of Canonsburg,'Vashington C"ounty,Penna. .LETT,,!,JRS testarrien~ary upon the above estate having been grantedto'the undersigned,notice,is he"'e-by given to those indebted thereto.to make immediate payment;andtothosehavingclaims0'"demands to present them for settlement. John A,Johnston,.Jr. 'Vesley Greei"Johnston David Oaks Johnston Executors1270'V"shington HoadPittsburgh,PennsylvaniaAndrew,V.Cummins.AttorneyLaw&Financ~BuildingC'anonsburg,Penna.Feb.14.21,28,19GG ... th~t the affiant or the corporation in behalf of which ~_~_~is acting is not inter- ested in the subject matter of said notice or advertising and that all of the allegations ,0'thI.'alfi."it"~,t?.::e~p~:::~:'~~~~, Sworn to and subscribed before me this el'e~--- ~:.__:e.~lAay Of~'_::t_~Q.~~~;r.._19 2.§'LINDA L.GOWERN,Notary Public l,. ."".Canonsburg,Washington County,Pa. -.....- -------------------:---..'--_....---------My Commission Expires ,-",Notary Public March 13 1967..,-...'.\' Washington County Reports Washington,Pennsylvania (PUBLISHED BY WASHINGTON COUNTY BAR ASSOCIATION) PROOF OF PUBLICATION In compliance with the Newspaper Advertising Act of May 16,1929,P.L. 1784 Sec.3,paragraphs (3)and (25). COUNTY OF WASHINGTONt 55. STATE OF PENNSYLVANIA ( Personally appeared before me,aNotary Public in and for said County and Commonwealth,CHARLES C.KELLER,who,being duly sworn,deposes and says:that he is the Editor of the WASHINGTON COUNTY REPORTS,the official legal periodical for said Washington County,publiS'bed weekly having its place of business at Washington,Washington County,Pennsylvania,and is act- ing as its agent in this behalf;that the said WASHINGTON COVNTY REPORTS was established on March 31,1920,and was.designated as the official legal publication for Washington County,Pennsylvania,by order of the several courts of said County,dated November 11,1920;that the printed notice or adver- tisement attached hereto is a copy of a notice or advertisement,exactly as printed or published,which appeared in the said legal periodical in its regular issues on the following dates: ............f..e.Qr.y.ilt'.y 11.,24.,... ............Ma.r.ch 3..,19.66 . i'lat the affiant or the corporation in behalf of which he is acting is not interested in the subject matt~J0'.ofi~said notice or ad=g an~~~~allegations of this affidavit as(};;{ft}d Ch~.Of/Ji&Ce:C/ Sworn m "n',~n"m,~~""""'Ed";;; ....}.z>.~:oL ~?:;:~.~.:,196.~......~ .....i~....&~..·:N.?t:~ " \'..'.,["'J-C ,.... \r\I,...",.:,.'.-'..;•".olary PubliC Wash/oyton,\;:a~!;il/;;tiin Co.,Pa. My CQmnllS~ion Expires .November 1,1969 .Estate Notices The Register of Wills has granted letters. testamentary or of administration,in the following estates.Notice is hereby given to all persons indebted thereto to make payment without delay and to those hav- ing claims or demands to present t'hem for settlement to the Executors or Admin- istrators or their Attorneys. • ••••• • •• •• • • • • •• JOHNSTON,JOHN A.,Dec'd. Late of Canonsburg,WashingtonCounty,Penna..Executors:John A.Johnston JrWesleyGreerJohnston,David'Oaks Johnston,1270 Washington Road'Pittsburgh,Penna.' Attorney:Andrew W.Cummins Law &Finance Bldg..Canonsburg,Fa. Yes.Federal Estate Tax Return has Been filed,audited'and approved and Is estate subject to the filing of a Federal Estate Tax Return?t:~~P.~~9.t.P...J~JJ.:.::!.'c." ..~.-~ A t I t d P I ',T f I h 't TAt $..I Paid·'in.Ful.lcuapaymenmaeonennsyvaniaransernenanceax,moun . If the Will ~akes any portion of e~tate'subiect to a 'life-estate',give name and birth date of 'Iife tenant·. None......__- -~._.._--__._-_.._.._..;;._-----_.._-- -_-..-___-____..----__---_--- Giv~Names and addresses of all unpaid creditors who are legally entitled to notice,together with the amounts of Such claims;state whethef'they are admitted to be correct;and whether the claim is denied, None '.. t .. " Give reference to such parts of the will as require interpretation by the Court;a reference to all questions re- quiring adjudication,and a statement of any other facts deemed necessary for the preparation of the adjudication: None :.... ;~ :~ " Balance for distribution per account, Itemize any additional debits not shown,by account: Total additional debits (Add) Itemize any additional credits not shown by account: $~}.-.9.~.~.:..~.~. $. '.or! Wesley Greer Johnstqn .David Oaks Johnston John.A.Johnston,·Jr. Russell Marino,Agent Total additional credits (Subtract) Balance'for distribution '$3000.00 3000~00 3000.00 518.96 .....~ $95l8_.96 ~. $~~.e.J.!.1~. If balance for distribution .is not in cash,list each item held in kind,giving appraised Value (or distribution Value)'.....,.,I Cash Only. $1483.42 ..,., , ,-.l.._._-~--_.,,--_,__~...,,-_.-.........-~----_..-------..--..__~__........~-'--..- ..,,'Testate Form No JQ ::l~.6.a ..__.._A. A. Fiduciary_'!.9~~:..~.~~g~~~.~~!'!.!..~_._.: ,WESLEY GREER JOHNS TON ..............~.,..P.~Y1P.Q~~JOHNS.T.QN __.. '. ,.f PETITION SUR AUDIT ):. IN THE ORPHANS'COURT OF WASHINGTON COUNTY Estate ·~L ,;r()~.!iI..~;r9I!!iI~~!iI c . '\\\.........._-_._.:._~_-~--_.._..___._-----_.._--..-.-_.------_.._-----..--_. Deceased .Date of Date of Decedent's death E'.~p..~~.~;'y §.!J~§.~__._..Grant of Letters :~~P~~.~;J;".Y..JQ.(.._J..~§J;).,_.__.. This is the ~.!~?:.?:t:-~..~.l?:~:..~~.l?:~.~~account filed in this estate If there have been former accounts filed in this estate,list file number or number and term_._. None..........____-__----_._-_:_--_.--.__.__.._.._----_.._----.---.---__----_.-..---------__-___._--__-_:.::__;--------_.---_..__.._----_. Election to tak~ Under or Againstwill.(cross out one) Date Election Place of; Filed _:Record ._. . .None'.,Name of survIving ..spouse ___...-.•...__,_ _..____ _.._ _..__..__. .List issue,where material: ..'':'' .~.'1'.L:r:NptMateria1 Did decedent marry after execution of will?(jndicate}mRi:mNo.Any children born after execution of will?(indicate) !I.Um:EI No.·If answer yes,nar.:n~them ·__:._ _:.•............._.. ----_._-..__ __ __-_----.--__--_----..--..---_. Leg.atees -".John A.Johnston,.Jr. Wesley Gr4eerJohns ton Davio.·\Oaks·Johnston Relationship Interest Fiduciary,if deceased or not sui juris .Son 1/3 Residue Son 1/3 Residue ,Son 1/3 Residue List,if exceptions to.above:Adeemed:Revoked:Lapsed:Abated:Give Cause:- None If partial intestacy,give facts: None Notice to interested parties.Have all parties,having either vested or contingent interests and all crediors entitled to'notice (Court Rule No.9 paragraph C:Section 6:Subdivision c)received written notice of the filing of the account and of call of audit?Yes.lUlm. If any ~xception give cause:~.'?..~.~~.~p..~~~.!'!-~. File copy of Notice and'date of mailing ~Jatl1J,ar;y...J.Q.~..•1.9.6B ,",',.:..".,,•.....•.•,",..•.•".,."",,.•.".., \. ·t L Bou••~Lot located at 236 w••t.Pike Str..t:~canontbur9,washington County6 '.rmsyl~an1a,aa 4eacribod in Deed Book Vol.601,page 416.aoid by Bxecutors to AndI'ew paul araytok,Jr.on May 23, 1966.Returned at 881••p~lce Store-aoom with aparaenu on second. floor and lot located a~104 W.at Pike Street,ce~on8bur9,Waabington County, ~enna:rlvenla ae deacribed in Deed Book Vol.554,page 209.Sold by Executor. 1966.llo~u~ned at salea price 100 Sheree of Phl11~••troleum -CommOn Dividend on 200 &bares of Phillips Pea-oleutl .of sse per .hue paid to holders of record February 4,1966 . 190 Sharee of General Blectr!e -Common .'. ..-, $~9OOO.OO 40000.00 $5721.87 110.00 11359.37 151 Sberea of Socony-Mobi1 Oil Co.....Counon 200 Ghar~o!Standard 011 of Bew J.~••y -COUInOn 100 aharea of Phillip.PctrolGUlft -Common lJ830.65 16112.50 5721.67 ,0 ~ l..!.J, ~---LL. -,- 0) .....'. ","... I . i.' ,'.~ $OlhU••'<J~I)u.'Qt\~'..~_-~n' Cb.,~lft9~eQ~nt4n th.'·.l1.ot\atU,k At.e.tiOM'b.11t:91,.nlut)'1"'~i. _..'una 0''.5 IncoM;·i.~~.~."ti<>tl ••14 p:r~j:'·t(>d.a. QU\t.~.,ln$t_ttbGW~.'~it ._fUnCI.o~tor_tum '~Qj*trOlol£~ ,"teJOIul.no.~~ny,I . .". ~btof .~.·U;v O~.e~~olu:~.t.c>~4u.l)~t $OcialSteu.,ty ..11 ,'\..:'."., \:..1.,.',;'152i12 3tt()9*9S 56!1rOO o ~J - ---------~--:-----------, &b"t4,dnn~n$~.',jI .~$$htl"ton ~~ty,. j'I • t.bW:l!1!,l~Uh fUil1 ~$$~Jl'~Ql1n n••100:1£..' ,, to·~_'.ttl.,<iN~Yto'k,_~.o~lla~2"$"." s_c~~a"\'l1i,'tb,$,P,I,t-.otA.,on ,~O,cmd ,f1.~fUl4 ),tot ,1~.~a«;,lQ4rttf.t.t ~"kc.. .;,. $\,J-SOUC .00 •t,.. .',, " Sueet~~n.fib~l1;~O:Qb1nttOD Co~nty, .~~l,l_)'l~en!&a£l,MeQJ:il:i~,In_~loOk \1010 $5,4,;,'.9'~1t$t~S¢t3.;t1 'by 1'ht~wt~Xf. ~t)81_»n..;l)\\.fl~.'Qn ~d\;1t¢h3~~ U.l66..nCli\~n~;a'f#6td.e~',~:tc~ 100 ShJ'~~B o,f tbillli,s 'et#iol$um '-''410_" l\)&i~~n(t on ~OQ $b~~llliot hI1;l.~P$foUolebJ» 0:1,$'~'9«.i·~$b~Uf.fat4 tiO ho:klf$r:~0'~ecod J,$1~t'~a~,.$it 1966 200 Sb~I:~~'Q~'l.n4$,a 0.11 oj U~8o.~C!!lY ....e~,n 100 $1\.1:$$of PhiU.l.pe eee~~w:n,'"CoW'4Qn 11359-lo37 lJ$il.f.iS to·..• iee$b~t;~$·.'~M:r::.l.tl;OM$."'·~~n S:~$hue$.o~i)ui'"~ntl)~'~~i$...;_tn . . . 6Q(ifd,,I\t·A,~co~t i~~~$-llWJ..~ At;'e.'D~n$l'i!:tiC!~f·."e,nbla(Ylv$oi$. ll.~'hA~¢It .19'1 I~~·~~~Qi'.tGt.1.Qia J.,'.d))~lQ"•cteatth G'lahl ~,il1~$1)$t.'bb$W~i.'-J~Jt' ne'~mil of~.J'I$~l\im ~__,~~n>1i~Gft .~:j..~fi:r;.~J(($.~.1@ .~~bY :t~liftot ~G.fU,,~Y.(it_~~@ba$t~1l 4u.I~~a~t $.l.el$El!c~f1llt;J .',.., hJ.,U2t:.&1·· Ii) ,;.'(1 ',:J i 2i.MI \.J,...~ ~C~JJp~ ~~\ ..........".....--'';~~lS~~12 ,.'"te~e,(1) .< ,. ~ ."' ,...:- ,f/Ir"·,..t'~'I .': ,No.'..:__.J_o.._::-...J_~QJ;3 ._..._...._._...A.A. Estate of JOHN A •JOHNSTON.............----_--..__.._---.~--_..---_.:.---- ~-~-.._.,.;r Deceased FiduCiary.:_._~.9.?_~:;_~~·__;~~9g~§-~-~;~---;tg,!.- WESLEX GREER JOHNSTON DAVID OAKS JOHNSTON PETITION SUR AUDIT FROM WHERE DECEDENT LEFt A WILL .' Counsel of FiduciarYwil1 submit herewith the .following,in conformity with Court Rules adoptee;!effective December 3,1951,being rule No.9:paragraph'b-c;and ,divisions thereof:shown on pages 23-24. 1.Written praecipes of all Counsel in the case. 2.Copy of order appointing'Guardian ad litem,if pertinent.", 3.Copy of Order appointing:Ti-ustee ad litem,if pertinent." 4.Proof of service of above. 5.Letters Testamentary or Administration C.T.A.or an attest copy of WilL 6;Copy of invent<?ry and appraisement. 7.Proof of advertisement of grant of letters if not filed with account., 8.Certificate oiSll13r\l'~:Jl.htl:S:PSeJJ1JY ()f the funds for dist9ilHlh'fJ'eh-lq(!l~Sf.I'&m judicial sale of real estate. 9.S~gn~d £.~d=.ae~jw:ed6_~Jecti~ns .if any distribution In kil1C1.'J tiltl'll f:';:SI 10.Copy of Federal Estate Tax return if es- tate is sUbjectcr~1tQl Jd ' ANDREW W.CUMMINS Attorney ~2 (;~').~~\~.;':..~'. ,.,'1~"\',),t...,.,:'~.. "...~.).-..','co',o!'~ ,,'",:....•.-1"\l ",It "",,-9 "":.- ...\"I">,'>.).J./';1"-::',~.l;,.;"'\'\;"'.E/'-::" .:-1 ..""'"~",<'<."\7'::'.:::~!(:2 ~.~.::5~~ ::0 0 -:-~;;;:./J"::: •::.;...;f~'{,"'..~~...."}",,-,~.-p/-.X""'....JJ ..-;.~'<'.fIr I\\:~","/'~~/":J..._f":.,.....ll Jy..).t;,),,'t-~,.,.v,/,.-,-.,r-0 Q ~\/,,\:-~,'~'.''\r..,,,..... ''''I'-..I III ,"<t'r Id,\..'~·:-'.ttl,tU".';"(L ..' . .~ ~, --~.,------:. 1------ ,! If Family Exemption claimed by Petition,give place of Record:~~~.~~______._____.__.___ If Family Exemption is claimed ~t audit,give name,relationship and basis for Claim:~~.~~. ( List any advancement or distribution on account that has been made,and nature ahd amount of same:' SEE ACCOUNT SEE ABOVE DEBITS Sugge$ted distribution of balance shown,both as to principal and income,attaching signed and itemized elections to take in kind 'if balance is not in cosh:.residuary shares being stated in proportions: 1/3 1/3 1/3 PAY,COURT'COS TS,THEN AWARD: residue to John A.Johnston,Jr.;,) residue to Wesley Greer Johnston iesidue to .Dav'id Oaks Johnston COUNTY OF WASHINGTON,55: COMMONWEALTH OF PENNSYLVANIA. The above named Fiduciary or'representative thereof, beir:"g d\Jly..__~~~.~~..___doth depose and say that the facts set forth in the foregoing petition are true to the best oL ~~~.~;knowledge and belief. .....-....-.~~9f'-n~:::··G;;j·,··:,·;;;:.·-..to and subscribed before <--:""y ,>, 2 ..-.-~/','me this Q,t:h day-.:oL;,Mar.ch 19.6.8 . S;gnatu,e OfOffjCe,~.£d~. .Title of Offi~er,..,..:.."~t~t.y f..\l.P..l..j,s;:. ..-.t•.""·... b Office expires..?.::..·.~.':~.;;~;. JERRY L.DICHAK.Nota;y Public ' Canonsburg,Washington Co.,Pa.trty Commission Expires November 16,1970 / And your petitioner will ever pray,etc. '........•~. ...~.~t~.... 3Jn 't~e (@rp~uriB'I QInurt,nfllaB~tngtnn QInunty <In the matter of the Audit of Account in E".to Of.~11:.~ TO THE AUDITING JUDGE: No.3 '0 -/?fro f________,~.•A.A. ~~"~..Enter'---"'4~=-=-',+-,appearance for_-'---~-r~~----~-=----~---------- ~,J )h c::==.= ?6 ~day of )~~.19 £,f N.B.-Counsel shall,by separate paper,present'a concise statement'of each claim,with supporting calculation of any interest claimed.Objections' to an account as filed,shall be concisely stated in a separate paper. Council suggesting proper distribution shall file a separate concise state-, ment in that regard.( ~ No...?~L Of .6819 ,AA In the matter of the First and Final account of John A.Johnston,Jr., Wesley ¢reer Johnston and David Oaks Johnston, Executors of Estate of John A.Johnston, Deceased. Alljiillirntinu null mrrrrr SlllNl .:/0 In.LS1~~WON/~i/W TBSsnlj 5C :6 /tIV 63 tl'Vt'J '88Sf n'·"11 J,'-J!Q .....6 ~'2 j&-1J1-D ,) 3Jn tlJt (@rp4an!1~QInu~t of lIus4tngton .mounty ESTATE OF .~.?~~...f:..:.!.~.~~~.~~~.~. Deceased.., No }.9.,Of 19..§.~,AA \ In the matter of fhe...:fJ~.9J..§.~g...;f.iD§..L . Account of}.?~E..!':::!.~9:~~~~~.~.}!..:.!.. '!!..~.~.~.~X.~!..~~!.~.!.~.~~~.~?E..~E.?::P~Y.~.~.Q~~s Johnston,Executors ADJUDICATION AND DECREE • And now M.'?:I~b::Z.·,19 Q.B..,this matter came on for heming, audit and distribution at this session and tes,timony taken;and thereupon,upon,due consideration thereof the balance for distribution in the hands of the Accountant is determined to be$.10.,.483 42 and the account is accordingly confirmed;and it is ordered, adjudged and decreed that the said balance be paid out by the Accountant in accordance wilth the schedule.of distribution hereto attached and made a part hereof,unless exce~tions hereto be filed sec.reg.or on.appeal be token herefrom sec.leg.I, SCHEDULE OF DISTRIBUTION Balance per account :~,. Additional credit asked at audit Balance . Deduct Clerk's Costs.&Receipts c••••••••••• Attorney h.~gt~~.Y!..·.~.g.~~!!l.t.r:t.?:. Redebit -'Advance on distribution Wesley Greer Johnston,.SOB,1/3 residue,credit to be taken by the accountants for funds advanced prior to distribution by the Court,. David Oaks'Johnston,son,1/3 residue,credit to be taken by the accountants for funds advanced prior to distribution by the Court, John A.Johnston,Jr.,son,1/3 residue,credit to be taken by the accountants for funds advanced prior to distribution by the Court, .97.00 27229.85 45872.09I 45872.09 45872.09 $10,386.42 $137,'616.27 No balance '":\,.:~,. j S'" $/OYtil.??J $ .(, bo f 41, Do te-----,-"I-e--Y_V_'.._19~ ;PENNSYLVANIA ESTATE TAX.I .,.. DETERMINATIO~/ - As verified by computation Esto te of:----'--::L..::.--+---'r--...:e-=~....:...-..=._i_=----- Bu reau Fi Ie No.__~~--:-_.:-...!_-+-~--:._-=---"£---.:..._~ 3.Amount of credit for State death taxes. As shown on retum form 0'finol chonge notke ($'IJ{41 $'~ ,U,1IIf:5.Normal Inheritance taxes paid to other States 6.'Total Inheritance tax credits ( 4 f 5) 7.Total li~bility for Penna.Estate Tax (3 -6) '1.Taxable estate per U S.Estate Tax Return,Form #706----2.Taxable estate per final change in Federal Return dated ~__~__ .,~ '4.Penna.Inheritance tax due andlor paid ·RCC-49 (9-64) .COMMONWEALTH OF'PENN5YLVANIA DEPARTMENT OF REVENUE- BUREAl!OF COUNTY COLLECTIONS ,INHERITANCE TAX DIVISION. ,,, I ! ,I II . !• I I .1 8.Less:Previous payments on ole of Penna.Estate Tax ~" Date of payment Amount of Tax oaid,Amount of Interest paid $------$------- 9.Balance of Penna.Estate Tax due (7 -8) 10.Interest due from to @6%per annum Prepared by,--=--...!b4;~--Fi'_+_=-------"--=~=¥_----- th~~ /if': $/J/(D .~. ," Reviewed and approved by (Nome)(Title),(Date) R CC-49 (B-71) COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF REVENUE BUREAU OF COUNTY COLLECTIONS INHERITANCE TAX DIVISION HARRISBURG,17127 l' \'V PENNSYLVANIA ESTATE TAX DETERMINATION .;{heL / Estate of:-4nbn R JoHW.sToA! Date of Death .;z ~Lr .6 ~ County IAlaSh ,n9/o1'\ Bureau File No.~3 -b!·.30 (Cf137~,I) 1.Taxable estate per U.S.Estate Tax Return,Form #706 2.Taxable estate per fl..!!.glchange in Federal Return dated SePT ILf.1<[6;.7 3.Amount of credit for State death taxes. $------- $_LL.::::D--=2.........",8L:-'Lf'--'-I-"-,9:......:(}=--f:!1 (j c.h (J (,1 9E.) As shown on return form or final,change notice ($ As verified by computation 4.Penna.Inheritance Tax due and/or paid 5.Normal Inheritance taxes paid to other States 6.Total Inheritance tax credits (4 +5) 7.Total liability for Penna.Estate Tax (3 -6) 8.Less:Previous payments on oj c of Penna.Estate Tax Date of payment Amount of Tax paid $,-----~ Amount of Interest paid $,------- 9.Balance of Penna.Estate Tax due (7 -8) 10.Interest due from to @6%per annum 11.Balance of Penna.Estate Tax and interest due as of $===--n===o=)::::::,=e....== Prepared by Reviewed and approved by _ (NAME)(TITLE)(DATE) Throughout these instructions all references to citizens of the United States are subject to the provisions of sections 2208 • and 2209 of the Code which relate to decedent United States citizens who were residents of a United States possession on the date of death.If such a decedent acquired his United States citizenship solely by 'reason of his connection with the possession,then for purposes of the Federal estate tax such decedent is deemed a nonresident not a citizen of the United States.If such adecedentacquiredhisUnitedStatescitizenshipwhollyindependentlyofhisconnectionwiththepossession,then such decedent " is deemed 'a citizen of the United States. A.Statute and seneral description.-The Federal estate tax is imposed by chapter 11 of the Internal Revenue .code.It is not an inheritance tax.It is imposed upon the transfer of the entire taxable estate and not upon the,share received by a particular beneficiary.The taxable estate is determined by tak- ing the value of'the gross estate (Schedules A to I,inclusive) and deducting therefrom the'total amount of the deductions authorized by the Statute. Different provisions control the determination of the tax lia- bility of the estates of citizens or residents of the United States and the estates of nonresidents not citizens of the United States. (Gene~aIly,reference herein to the-decedent's residence means the decedent's domicile.)For specific information on Federal estate taxation in ,the case of a nonresident not a citizen of the United States,see "Additional Instructions for Estates of Non- residents Not Citizens of the United States"on page 39. B.Estates for which return required.-A return on this form must be filed for the estate of every citizen or resident of the United States'whose gross'estate~·as defined by the Statute exceeded $60,000 in value at the date of death. _.Instructions relative to the requirement of a return for the estate of a nonresident not a 'citizen of the United States are set forth on page 39. The value of the gross estate at the date of the decedent's death governs the liability forthe filing of the return,l'egardlessofanyvaluationasofasubsequenttimethatmaybeadoptedbytheexecutorundertheprovisionsofsection2032oftheCode. C.Time and place of filinS retlirn.---:'The return is due 15 months after the date of the decedent's death.The return for the estate of a resident decedent must be filed with the District Director of Internal Revenue in whose district the decedent had his domicile at the time of his death.The return for the estate of a nonresident citizen must be filed with the Director of International Operations,Internal Revenue Service,Washing- ton,D.C.,20225,U.S.A.In exceptional cases,application may be made to the Commissioner for permission to file in anyotherinternalrevenuedistrict. D.Pa.yment of tax.-The tax is due 15 months after the date of the decedent'ii death,and must be paid within such period unless an extension of time for payment thereof has been gl'anted.by.the District Director,.01',unless ,the executor,has, properly elected under section 6166 to pay in installments. Check or money order in payment of the tax should be made payable to "Internal Revenue Service." E.Sllpplemental doc"-ments.-If the decedent was a resident and died te-state a certified copy of the will must be filed with the return. If the decedent was a nonresident citizen,the following documents must be filed with the return:'(1)A copy of the inventory of property 'and the schedule of liabilities,claims against the estate and expenses of ad- ministration filed with the foreign court Of 'probate juris- diction,certified by a .proper,official of,such court. (2)A copy of the return filed under the foreign inherit-ance,estate,legacy,succession tax,or other death tax act, certified by a proper official of the foreign tax department, if the estate is subject to such a foreign tax. (3)If the decedent died testate,a certified copy of the will. Other supplemental documents may be required as herein- after explained under the instructions for the several schedules. F.Execution of return.-This form consists of 40 pages num- bered in consecutive order.For convenience in typing carbon copies,the sets as issued may be readily separated and the cor- responding sheets matched.When completed,the return must be permanently fastened tosether with all sheets in proper order. Any suitable type of paper fastener maybe utilized for this pur- pose.Ordinary wire staples are l:ecommended for the returnofaveragesize.All poses provided,numbered 1 througrt 40, must be included. Write onlv on one side of each sheet of paper.If there is not sufficient space for 'all entries under any of the printed sched- ules,use additional sheets of the same size,and insert in theproperorderintheretu·rn.All information required as indi-cated under "General Information"must be supplied in the spaces provided.The questions asked under each schedule must be specifically answered,and if the decedent owned no Page 2 property of any class specified for the schedule,the word "None"should be written across the schedule. The gross estate must be set forth 'under the appropriate Schedules A to 1.The deductions,except the amount claimed for the exemption,should be shown under the appropriate Schedules J to N.In the case of a resident or citizen the 'amount deducted for the exemption should be shown',under Schedule P,and the taxable estate computed thereon. For every item of principal,any income accrued thereon at the date of the decedent's death must be separately entered under the column headed "Value at date of death";and,if the altei:nate valuation is adopted,any includible income,with respect to each item of principal,as hereinafter explained, must be separately entered under the column headed "Alternate value."., The items should be numbered under every schedule and a separate enumeration should be used for each schedule.The total for each schedule should be shown at the bottom of the schedule.The totals should not'be carried'forward from one schedule to another,but the total or totals for each schedule should be entered under the Recapitulation,Schedule O. The information indicated'by the colutp.;ns headed "Subse- quent valuation date"and "Alternate value"should not be shown unless the executor adopts the alternate valuation authorized by section 2032 of the Code.If such alternate valuation is not adopted,the space in the columns headed "Sub- sequent valuation date"and "Alternate value"may be utilized for descriptive matter,as indicated in the example shown under the instructions for Schedule A.Similar information should be omitted in the space provided therefor under the Recapitula-•tion,Schedule 0,if the alternate valuation is not adopted.' The computation of the tax must be shown in detail as indi- cated on page 1.If the executor determines no liability for tax,the word "None"should be shown at item 8 under "Com- putation of Tax." If credit for foreign death taxes is claimed,the credit should be computed on Schedule S. The filing of Form 706,will not be considered the filing of a complete return as required by the Statute and the regula- tions issued pursuant thereto unless all the information as indicated herein is set forth..,ROlindilig off to whole·doliar amounts.-If you wish,the money items on your return may be shown as whole-dollar amounts. This means that you eliminate any amount less than 50 cents, and increase any amount from 50 cents th~'ough 99 cents to thenexthighestdollar.' , . G.Signature and verification.-If there is more than one executor or administrator,all sh9uld verify and sign the return.Such persons.are responsible for the return as filed and incur liability for penalties provided for erroneous,false,or fraudu- lent returns. If there.is,no executor or ad~inistl'atorappointed;qualified, and acting in the United States,every person in actual or con- structive possession of any property of the decedent is consti-tuted by the Statue an executor for the purposes of the tax (section 2203 of the Code),and is liable for the filing of the return.If two or more persons are liable for the filing of the return,it is preferable for all to join in the filing of one complete return,but if they are unable to join in making one complete return,each is required to file a return disclosing all the information he has in the case,including the name ofeverypersonholdinganinterestinthepropertyandafull description of such property.If the appointed,qualified,and acting executor or administrator is unable to make a complete return,the Statute requires that every person holding an interest in the property shall,upon notice from the district director,make a return as to such interest.The person or persons who file the 'return must,in every case,sign under penalties of perjury the fil'st declaration on page 40.If the return is prepared by an attorney or agent for the person or persons filing this return,the second declaration on page 40 must also be signed under penalties of perjury by such attorney or agent.H.Representation by attorney or asent.-If the executor istoberepresentedbyanattorneyoragentbeforetheInternalRevenueService,by correspondence or otherwise,itis necessary (Continued on page 4) 059-16-77.7Sij-b 1I 20947.10$_ - , UNITED STATES DO NOT WRITE IN ..SPACE BELOW ESTATE TAX RETURN Date received a.tes of nonresidents not citizens of the United States may generally file on Form 706NA instead of this form.For details see pa.ge 39., Date of death.Pebruary 6 •1966 TON Social Securi~Number196-12-790 "death Employer Identification No.,if any ike Street None Citizenship (nationality)at time of t •Pennsylvania death U.S.A•. "'Were letters testamentary or of administration granted for this estate?I Date granted ~Yes 0 No February 10,1966 me of court Register of WIlle ILocation of courtWashingtonCountyWashington,Pennsylvania te whether executor,executrix,:administrator,or administratrix.Explain if different from the person or. DESIGNATION ADDRESS (Number,street,city,State,and Posta.'ZIP code) n.Jr.Bxecutor 1270 Washington Road. Pittsburgh,Pennsylvania 15228 hns~on Bxecutor 1819 i'ragone Drive, Bridgeville,pennsylvania t.OD Bxecu~or 31 Green Lane, Weston,93.Massachusetts. COMPUTATION OF TAX(See instructions on page 38) \ 2 4 0 I,•I David oaks Johns Wesley Greer Jo John A.Johnsto JOIm A.JOHNS FORM 706 (Rev.Sept.1963) U.S.TREASURY DEPARTMENT Est Internal Revenue SerVice NAME 236 West.t Canonsb.urq Taxable estate (Item 5,Schedule P,or Item 9,Schedule Q,whicheVlJr IS applIcable)$..lS1..fJ..J,._.~.._ PART I 1.Gross estate tax (use table A,page 40).. . . . ........... . . . . . . . .... . . . . . . . .... . . ...... . . . . . ......... ...$....11.$..~~.'!..$..1..._ 2.Credit for State death taxes (use Table B,page 40)" . . . . . . ...... . . . . . .... . . . .... . . . .605.47 3.Gross estate tax less credit for State death taxes (item 1 minus item 2).This is the net amount payable unless credit for Federal gift taxes,tax on prior transfers,or foreign death taxes is claimed in Part II . PART II 4.Credit for Federal gift taxes.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...$___.. 5.Credit for tax on prior transfers.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......__._. 6.Credit for foreign death taxes 1 1 7.Total of credits under Part II (total of items 4,5,and 6)\_ 8.Net estate tax payable (item 3 minus item 7).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...$20947.10 (SPACE FOR USE OF INTERNAL REVENUE SERVICE) Did the decedent die testate? ~Yes 0 No Case No. Residence (domicile)at time of Decedent's name To whom granted?(Designa persons filing return) Assessments Payments Type of assessment(tax,interest,elc.)Amount list Page line Date Principal Interest $ ____._-___.._.....$_...............$._.__....• DETERMINATION BY INTERNAL REVENUE SERVICE _-,.~O"'~•..-, GENERAL INSTRUCTIONS-Continued (1)thatthe attorney or agent be enrolled to represent claimants before the Internal Revenue Service,and (2)that a power of attorney shall have been submitted authorizing the attorney or agent to act on behalf of the executor in the matter.Copies of Tre~su.rY Depart~ent Circular No.230,as revised,relating to admIssIon to practice before the Internal Revenue Service may be obtained fro~the Director of Practice,U.S.Treasury De- partment,Washmgton,D.C.,20009,and a pamphlet relative to the conference and practice requirements of the Internal Reve- nue Service may be purchased from the Supt.of Documents,U.S.Government Printing Office,Washington,D.C., 20402, for 5 cents.. I.Penalties.-Severe penalties are provided by law for willful failure to make and file a return on time and for willful attempt to evade or defeat payment of tax. J.Gross estate.-In addition to the general provision of the Statute requiring the inclusion in the gross estate of property to t~e extent of the decedent's interest therein,other provisions~pecifica}ly include,as more fully explained hereinafter in the ll1strucbons for the separate schedules,certain transfers made during the decedent's life without an adequate and full consid- eration in money or money's worth,annuities,joint estates with right of survivorship,tenancies by the entirety,life insurance even though payable to beneficiaries other than the estate,prop- er~y over which the decedent possessed a general power of ap- pOll1tment,and dower or curtesy (or statutory estate in lieu thereof)of the surviving spouse.The gross estate of dece- dents,citizens or'residents of the United States,dying after October 16,1962,includes real property situated outside of the United States,unless the decedent's death was after October 16, 1962,and before July 1,1964,and (i)the decedent's interest in the foreign real property was acquired before February 1,1962, or (i,i)the decedent's interest in the foreign real property was acquIred after January 31,1962,but the donor or prior decedent from whom the decedent's interest was acquired had acquired such prior intet:est before February 1,1962.(The gross estate of decedents dymg before October 17,1962,does not include real property situated outside of the United States.)See section 20.2031-1 of the regulations for the rules governing foreign real property includible in the gross estate. Co!"'!'unity property•.:...-Property held by the decedent and his SUrVIVll1g spouse as community property is includible in the gross estate to the extent of the decedent's interest in such property under the applicable law of the'State,or possession of the United States,or of the foi'eign country. For further details,see Estate Tax Regulations. K.Valuation.-Unless the executor properly elects at the time the return is filed to adopt the alternate valuation authorized by section 2032 of the Code,all property included in the gross estate must be valued as of the date of the decedent's death. L.Alternate valuation.-Ifthe executor elects to adopt the valuation authorized by section 2032 of the Code,such election should be indicated in item 21 under "General Information." The election is not valid unless made on the return within the period of time prescribed by law and regulations. In general,the object of section 2032 of the Code is to make provision whereby the amount of tax otherwise payable may be lessened when,within the year following the decedent's death, the gross estate has suffered a shrinkage in its aggregate value. The executor may,by an election duly made upon this return have the property which was included in the gross estate on th~ date of the decedent's death valued as of the applicable dates, as follows: (1)Any property distributed,sold,exchanged,orotherwise disposed of within 1 year after the decedent's death valued as of the date of such distribution,sale,exchange,~r other disposition,whichever first occurs; (2)Any p'roperty not distributed,sold,exchanged,or otherwise disposed of within such I-year period valued as of the date 1 year after the date of the decedent's death; (3)Any property,interest,or estate which is "affected by mere lapse of time,"valued as of the date of decedent's death'~x~ept that an adjustment is to be made for any differenc~ m ItS value not due to such lapse of time,as of the date 1 year after the date of decedent's death,or as of the date of its dis- tribution,sale,exchange,or other disposition,whichever first occurs.Property,in the case of a sale,exchange,or other disposition thereof within the I-year period,is to be valued as of the date when it ceases to form a part of the gross estate,that is,the date when the title passes as the result of its sale,exchange or other disposition.The terms,"distributed,""sold,".lex- changed,""or otherwise disposed of,"comprehend all possible Page 4 ways by which property may be separated or passed from the' gross estate. The property to be valued as of 1 year after the date of decedent's death,or as of that date,or as of some intermediate date,is the property included in the gross estate on the date of' the decedent's death.It will be necessary in every case first to determine what property constituted the gross estate at decedent's death. Interest accrued to the date of the d,ecE}dent's death on bonds notes,and other interest-bearing obligations constitutes .prop~erty of the gross estate on the date of his death and is to be included in the alternate valuation.Rent accrued to the date of the decedent's death on leased realty or personalty consti- tutes property of the gross estate on the date of his death andistobeincludedinthealternatevaluation.. Outstanding dividends which were declared to stockholders of record on or before the date of the decedent's death consti- tute property of the gross estate on the date of his death,and are to be included in the alternate valuation.Ordinary divi-dends declared to stockholders of record after the date of the dec,edent's death do not constitute property of the gross estate at the date of his death and are to be excluded from the alter- nate valuation.However,if dividends a~e declared to stock- holders of reco'rd after the date of the decedent's death with the effect that the shares of stock at the subsequent valuation date do not reasonably repi:esent the same property existing at the date of the decedent's death,such dividends are to be included in the alternate valuation,except to the extent that such dividends are paid from earnings of the corporation after the date of the decedent's death. The election applie.s to all the property included in the gross estate on the date of the decedent's death.It cannot be ap.plied only to a portion of such property. In every case where the election is exercised,the return must set forth (1)an itemized description of all property included in.the gross estate on th~date of the decedent's death together •"11th the value of each Item as of that date,(2)an itemized disolosure of all distributions,sales,exchanges,and other dispositions of such property during the I-year period after the decedent's death,together with the dates thereof,and (3)the value of each item of property determined as herein-• before explained and in accordance with the regulations issued, pursuant to section 2032.The foregoing information must be shown·under the appropriate columns of each schedule.Under the column headed "Description"a brief statement for each iteII.I must be shown explaini:t:Ig the status or disposition gov- ermng the subsequent valuatIOn date,such as,"Not disposed of within year following death,""Distributed,""Sold,""Bond p.aid on mat~rity,"etc..U:nder thi~sam~heading a descrip- tIo~of each Item of prmcIpal and mcludible income must be entered separately.Under the heading,"subsequent valua- tion date,"the applicable date for each separate entry of principal and includible income must be shown.Undel' the heading,"Alternate value"the amount of the prin- cipal and the amount of includible income must be sepa- rately shown.In the case of any interest or estate the value of which is affected by mere .lapse of time such as patents, leaseholds,estates for the hfe of another,or remainder interests,the value shown under the heading "Alternate value"must be the adjusted value,i.e.,the value as of the date of death with an adjustment reflecting any difference in its value as of the later date not due to mete lapse of time.Under the heading,"Value at date of death"the amount of the principal and the.amount of~ncludib~eincome must be entered separately.F~rexamples Illustratmg the entry of the information requIred under the schedules,see pages 6 and 10.While the examples there shown pertain to Schedules A and B,the infor- mation required under the other schedules should be set forth in a similar manner.All the information indicated on this form must be supplied.Statements as to distributions,sales,exchanges,and other dispositions of the pl:operty within the I-year period after the decedent's death must be supported by evidence.If the court issues an order of distribution during that period,a certified copy of the order must be submitted as part of the evidence. The district director may require the submission of such additional evidence as is deemed necessary. M.Credits against tax.-Under certain circumstances a creditagains~the tax is a:uthorized for estate,in~eritance,legacy,or succeSSIOn taxes paId to a State,or the DIstrict of Columbia. The size of the taxable estate determines whether this credit is allowable and,if so,the maximum amount thereof.Credits for (Continued on page 6) 059-16-77750-1 . -GENERAL INFORMATION ecedent at time of death (Number,street,city,State,and Postal ZIP code) st Pike Street burg,Pennsylvania 15317 ich domiciled at time of death IZbS;~:mb:~3 ~omi1884as (Bi;~i:)Ivania iage •p,••,4.Domicile at date of marriage __..-,5.Citizenship (nationality)atd~te of death 12,1914 Canonsburg,Pennsylvania U.S.A. ath Wigbtman IIanor'1Gb.Cause of death COngestive Heart 16C:.Length of last illness n St.t Pgh.,.Pa.Failure due to Arterlo-4 Years hysicians sclerotic heart disease NAMES ADDRESSES(Number,street,city,Slale,and Postal ZIP code) •Herron,M.J).522 Medical Arts Bldg.,Pittsburgh,ta. Heath,M.D.2423 Saw Mill Run 81vd.,Pi~tsburgh,pa. A.Brethauer,Jr.,M.D.Medical Arts Building,Plttsburgb,pa. as c~nfined in a hospital during his last illness or within 3 years prior to his death,give name and address of hospital lin1c SectJ.ODi Bew England ~ti8t.Ros~ital,Boston,MassachusettserianHospita,Lothrop St..,It.t.sburg,Pa.15213 n Manor,Nursing Home,2025 Wightman Street,Pittsburgh,Pa.15217 th _"19b.Place of birth (City and State or country,if other than United States)r 3,1884 Baffs Mills,Huntington County,'a.t U.S ..A. r occupation IlOb.If retired,state former business or occupation Physician Physi.cian dch:ess (Number,street,city,State,'and Postal ZIP code)Formerly West Pike Street,canonsburg,pennsylvania Children 'lbree tus of decedent at date of death rried o Single o Legally separated ~idowor Widower o Divorced was a Widow or widower,give name of deceased spouse 113a.Date of such"spouse's death Greer Johnston November 2,1954 of kin,devisees and legatees (If more than five,only the names of the five principal ones are required) NAME RELATIONSHIP ADDRESS (Number,streel,diy,State,and Postal ZIP code)- Johnat.oft,Jr.Son 1270 Washington Road P1 tt.sburgh ,Pennsylvania 15228 Greer Johnston Son 1819 Tragone Drive Bri4geville,Pennsylvania ks Jobnston Son 31 Green Lane Weston,93,Massachuset.ts David oa Wesley Jobn A. 13.If decedent Helen 14.Heirs,next 12.Marital sta OMa 236 We Canons 11.Number of 9a.Date of bir Sept.embo lOa.Business 0 8.If decedent w Lahey ePresbyt Wightma ".Frank T Brle M. Bdward •1.Address of d •10c:.Business a 104 Za.State in wh Penney 3.Dateof marr Oct.ober 6a.Place of de 2025 Wightma 7.Decedent's p ESTATE OF ~~~~~_~c'!~~~~~~~~_Page 3 ~w9-16 77750-1 convention apply in the case of a decedent dying on or after. the effective date shown. Country Effective DateAustralia.January 7,1954 Canada .January 1,1959 Finland -------------.December 18,1952 France________________________________________________October 17,1949*Greece December 30,1953 Ireland .------_December 20,1951 Italy October 26,1956 Japan .-----------------------.-----------.-.April 1,1955Norway"-'December 11,1951 Switzerland .September 17,1952 Union of South Africa .July1'5,1952 U!lited Kingdom July 25,1946 GENERAL INSTRUCTIONS-Continued Federal gift taxes also are,under specified conditions,allow- able against the tax.See page 38 for information relative to the allowance of thesecredits. In the case of a citizen or resident of the United States, credit is authorized by statute and treaties,under certain con- ditions,for estate,inheritance,legacy,and succession taxes paid to a foreign country or possession of the United States. (See "Credit for Foreign Death Taxes"on pages 36 and 37.) Credit for tax on prior transfers is explained in the instruc- tions on pages 32 and 34. N.Credit for foreign death taxes.-In the case of a citizen or resident of the United States,a credit is authorized uhder. certain circumstances for death taxes paid to a foreign coun- try,or a possession of the United States (See section 2014 (g) of the Code).The credit is authorized (a)by statute or (b) by treaty.Where credit for a foreign death tax is authorizedbytreaty,there is allowable either the credit computed under "General Instruction J governs real properly. the Statute or under the treaty,whichever is the more beneficial In addition to authorizing credit for foreign death taxes,the to the estate.See "Death tax conventions"below for the conventions provide situs rules which apply in the cases of effective dates of the treaties which authorize the allowance certain nonresident aliens.Information relative to these situs of a credit for foreign death taxes.See "Instructions for rules is set forth on page 39. Schedule S"on page 36 for a list of the foreign death taxes Further instruetions.-Detailed instructions pertaining to each for which credit is authorized by treaties,and for information schedule are included herein.Additional instructions for relative to the computation of the credit.estates of nonresidents not citizens of the United States are O.Death tax conventions.-Death tax conventions are in effect given on page 39.FOl:further information see the Estate Tax with each of the countries listed below.The provisions of a Regulations. INSTRUCTIONS FOR SCHEDULE A-REAL ESTATE Real estate should be so described and identified that upon mortgage,only the value of the equity of redemption (or value investigation by an Internal Revenue officer it may be readily of the property less the indebtedness)need be extended in the located for inspection and valuation.For each parcel of real value column as part of the gross estate,in which case no estate there should be given the area and,if the parcel is im-deduction for the indebtedness is allowable under Schedule K. proved,a short statement of the character of the improvements.Real property which the decedent has contracted to purchase For city or town property state street and number,ward,sub-should be listed in this schedule.'The full value of the property division,block and lot,etc.For rural .property state township,and not the equity must be extended'in the value column.The range,landmarks,etc.unpaid portion of the .purchase price should be deducted under • If any item of real estate is subject to a mortgage with Schedule K of this return. respect to which the decedent's estate is liable (i.e.,if the The value of dower,curtesy,or a statutory estate created in 'indebtedness is enforceable against other property of the estate lieu thereof,is taxable,and no reduction ()n account thereof ornotsubjecttosuchmortgage,or if the decedent was personally on account of homestead or other exemptions should be made liable therefor),the full value of such property must be ex-in returning the value of the real estate. tended in the value column.The amount of the mortgage in The basis for the returned values should be stated.If based any such case should be shown under "Description"in this upon appraisals,copies of such appraisals,together with an schedule,and deduction taken therefor under Schedule K.If,explanation of the basis of the appraisals,'should be attached however,the decedent's estate is not liable for the amountof the to the return. Examples showing use of Schedule A Example where the alternate valuation is not adopted;date of death,January 1,1955 ItemNo.Description I V;I~~~i~~U~~\e I Alternate value Value at date of death 1 House and fot,1921 William Street NW.,Washington,D.C.(lot 6,square 481).Rent of $900 due at end of each quarter,February 1,May 1,August 1,and November 1.Value based on appraisal,copyofwhichisattached,_ Rent due on item 1 for quarter ending November 1,1954,but not collected at date of death _Rent accrued on item 1 for November and December 1954 ._ 2 House and lot,304 Jefferson Street,Alexandria,Va.(lot 18,square 40).Rent of $100 .payablemonthly.Value based on appraisal,copy of which is attached "_ Rent due on item 2 for December 1954,but not collected at date of death _ Example where the alternate valuation is adopted:date of death,January 1.1955 $36,000 900 600 12,000 100 Item Description Subsequent Alternate value Value at date of deathNo.valuation date 1 House and lot,1921 William Street NW.,Washington,D.C. (lot 6,square 481).Rent of $900 due at end of each quarter, February 1,May 1,August 1,and November 1.Value based ~~a~PFol~~~~:oi~~L~~-i-~~-~~--~~~-~~~~~~-~~:-~~~=-~~-~~-~~_:~~~~~__1/1/56 $30,000 $36,000Rentdueonitem1forquarterendingNovember1,1954,but not 2/1/55 900 900collecteduntilFebruary1,1955__________________________________________ Rent accrued on item 1 for November and December 1954,col-600 600lectedonFebruary1,1955-________________________________________________2/1/55 2 House and lot,304 Jefferson Street,Alexandria,Va.(lot 18, square 40).Rent of $100 payable monthly.Value based on appraisal,copy of which is attached.Property exchanged for 12/1/55 10,000 12,000farmonDecember1,1955_______________________________________.____________ Rent due on item 2 for December 1954,but not collected until Feb-2/1/55 100 100ruary1,1955___________________________________________________________________ Page 6 059-16-77750-1 I' I GENERAL INFORMATION-Continued 15a.Did the decedent at date of death own property in any State or country other than that of his last domicile? If "Yes,"state place of ancillary probate proceedings . ISb.Name of ancillary administrator or executor Bone 15«:.Address of ancillary.administrator or executor (Number,street,city,State,and'Postal ZIP code) .Bone 16a.Did the decedent at the time of his death have a safe deposit box held either alone or in the joint namesof,fims~lfandanot~er?·Mellon Nat-ional Bank a Trust coupany If Yes,'state location canonsburg .Offlee .,'. \qesi:Pike Street,canonsburg,PennsylVBni.. 16b.If held joiilUy,give the ncime of,the joint depositor. .,.CaiDille Bays 'Johnston 16«:.Relationship of joint aepositor t6 decedent Daughter-In-Law o Yes ~No ~Yes 0 No 16d.If the decedent had a safe "deposit box at the time of his death,indicate by schedule and item number u:O:der 'what schedules in this return the contents are listed - 16e.If any of the contents of the safe deposit box are omitted from the schedules,explain fully'why omittedI-.•• ..NOne Ondtted 17.Did the undersigned person or persons filing return make diligent and careful search for property of every kind left by the deceden.t?··,".~Yes 0 No .18.Did th~'same undersigned make diligent and careful search for information as to any transfers (other than outright transfers not in trust)of the value of $5,000 or more made by the .decedent during his lifetime without an adequate and full consideration in money or money's worth?·.~.Yes 0 No 19.Did the same undersigned make diligent and careful search for the existence of any trusts created by the decedent during his lifetime or any trusts created by other persons under which the decedent possessed any power,beneficial interest,or trusteeship?rv..~Yes 20a.Name of attorney representing estate,if any Andrew W.Cummins o No ZQb.Address (Number,street,ci~y,State,and Postal ZIP code)ZOe:.Telephone No. Law &Pil\aDCe Building Canonsburg',pennsylvania 15317 ALTERNATE VALUATION 145-8910 (These instructions apply only if alternate valuation is elected.For further information on this s~bject.see General Instructions-on page 4)," 21.An election to have the gross estate of the decedent valued as of the alternate date or dates is made by entering a check mark in the box set forth below.,'.'IX The executor elects to have the gross estate of this decedent valued in accordance with valt\es as of a date or dates subsequent to the de. cedent's death as authorized by section 2032 of the Code. ESTATE OF -.-.-.Jol;D--l\~---~bJl$-~n-----------------c--------c--.:.._._._...Page 5 -----·----INSTRUCTIONS FOR SCHEDULE B STOCKS AND BONDS 1.Description.-Description of stocks should indicate number of shares,whether common or preferred,issue,par value,price per share,exact name of corporation,and,if not listed on a stock exchange,the post-office address of the principal business office,the State in whicli incorporated,and the date of incor- poration.If listed,state principal exchange upon which sold. Description of bonds should include quantity and denomina- tion,name-of obligor,kind of bond,date of maturity,interest rate,and interest-due dates.State the exchange upon which listed,or if unlisted the principal business office of the company. 2.Stocks and b.onds subject to fqreign death taxes to be grouped under separate heading.-Where any estate,inherit- ance,legacy,or succession tax has been paid to a foreign coun- try in respect of any stocks or bonds included in this schedule, the stocks and bonds subjected to the foreign death tax should be grouped separately on this schedule under the heading,"Sub- jected to Foreign Death Taxes." 3.·Valuation.-In the case of stocks and bonds listed on a stock exchange the mean between the highest and lowest quoted selling prices on the valuation date shall be considered as the fair market value per share or bond.If there were no sales on the valuation date,such value shall be determined by taking the mean between the highest and lowest sales on the nearest trading date before and the nearesttrading date after the valua- tion date (both such nearest dates being within a reasonable period),and by prorating the difference between such mean prices to the valuation date,and by adding or subtracting,as the case may be,such prorated portion of the difference to or from the mean price obtaining on such nearest trading date be- fore the valuation date.For example,assume that sales of stock nearest the valuation date (June 15)occurred 2 tradingdaysbefore(June 13)and 3 trading days after (June 18)andthatonsuchdaysthemeansalepricespersharewere$10 and$15,respectively.The price of $12 shall be taken as represent- ing the fair market value of a share of such stock as of the valuation date.If,however,on June 13 and 18 the mean sale prices per share were $15 and $10,respectively,the price of $13 shall be taken as representing the fair market value of a share of such stock as of the valuation date.If the security was listed on more than one exchange,the records of the exchange where the security is principally dealt in should be employed.In valuing listed stocks and bonds the executor should observe care to consult accurate records to obtain values as of the ap- plicable valuation date. Dividends declared on shares of stock prior to the death of the decedent butpayable to stockholders of record on a date after his death are not includible in his gross estatefor Federal estate tax purposes.However,in a case where the stock is being traded on an exchange and is selling ex-dividend on the date of the decedent's death,the amount of the dividend should not be included in the gross estate as a separate item but should be added to the ex-dividend quotation in determining the fair market value of the stock as of the date of the decedent's death. In the case of stocks and bonds which are not listed upon an exchange,but are dealt in through brokers or have a market,thefairmarketvalueshallbedeterminedbytakingthemeanbe- tween the highest and lowest selling prices as of the valuation date;or,if there were no sales on that date,such value shall be determined by taking the mean between the highest and lowest sales on the nearest trading date before and the nearest trading date after the valuation date (both such nearest dates being within a reasonable period),and by prorating the difference be- tween such mean prices to the valuation date,and by adding or subtracting,as the case may be,such prorated portion of the difference to or from the mean price obtaining on such nearest trading date before the valuation date.If quotations are ob- tained from brokers,or evidence as to the sale of securities is obtained from the officers of the issuing companies,copies of the letters furnishing such quotations or evidence of sa~e should be attached to the return. If actual sales are not available during a reasonable period beginning before and ending after the valuation date,the fair market value may be determined by taking the mean between the bona fide bid and asked prices on the nearest trading datebefore,and the-nearest trading date after the valuation date (both such nearest dates being within a reasonable period),and by prorating the difference between such mean prices to the valuation date,and by 'adding or subtracting,as the case may be,such prorated portion of the difference to or from the mean Pag~8 price obtaining on such nearest trading date before the valua- tion date.If actual sale prices or quoted bona fide bid and asked prices are available on a date within a reasonable period prior to the valuation date,but if no actual sale prices or bona fide bid and asked prices are available on a date within a rea- sonable period after the valuation date,or vice versa,then the mean between such highest and lowest available sale prices or bid and·askedprices may betaken as·the value.--...... For the valuation of inactive stock and stock in close corpora- tions,see the regulations issued pursuant to section 2031;of the Code.Complete financial and other data upon which th~estate bases its valuation should be submittedwiththereturn,including balance sheets (particularly the one nearest to the valuation date),and 'statements of the net earnings or operating results and dividends paid for each of the 5 years immediately preced- ing the valuation date.. Securities returned as of no value,nomin~l value or obsolete, should be listed last,and the address of the company and the State and date of the incorporation should be stated.Copies of correspondence or statements used as the basis for return at no value should be attached.I 4.Interest and dividends.--'Interest and dividends must be shown separately as explained in the General Instruction F, "Execution of Return."i 5.Estate of nonresident not a citizen of the United Stat~s.-In the case of the estate of a nomesident not a citizen of theiUnited States,stocks of foreign corporations are not to be included in this schedule or any other schedule.If such an individ~al was not engaged in business in the United States,there snaIl not be includ.ed in this schedule or any.other.schedule,obli~ations issued by the United States prior to "March 1,1941.ExCept as provided in death tax conventions,discussed below,in the caseofanonresidentnotacitizenoftheUnitedStates,sto<!ks and .bonds of the following classes must be entered in this schedule as situated in the United States:(1)stoc~s of corpo~'ations organized in the United States regardless of the location of the certificates,and (2)corporate or other bonds if the certificates were situated in the United States at"the time of death.I Under the provisions of the death tax conventior\s with the following countries,the bonds listed after each country's name which were owned by a nonresident not a citize!1i of the United States are not situated in the United States and accord-ingly should not be entered in this schedule:! (a)United Kingdom,France,and Greece.-If a decedent was domiciled in one of these countries,all bonds,regardless of location of the certificates.: (b)Finland.-If a decedent or his beneficiary was!a resi- dent (not domiciliary)of Finland,bonds issued by.acbrpora- tion not organized in the United States or by a noncotporate issuer who does not have a place of residence (not domicile) in the United States.'I (c)Ireland and Union of South Afl'ica.-If a decedent was domiciled in Ireland,or was ordinarily resident (not domiciliary)in the Union of South Africa,all bonds,provided they were actua~ly subjected to estate duty in Ireland,or in the Union of South Africa,as the case may be.: (d)Australia.-If a decedent was domiciled in Australia,bonds issued by a debtor who does not have a place (>f resi- dence (not domicile)in the United States (see convention for exceptions),and bonds issued by any government,munici- pality,or public authority located outside of the 'United States.! (e)Japan.-If the beneficiary of a decedent's estate was domiciled in Japan,bonds (except bearer bonds)issued by a corporation not organized in the United States or by a non~ corporate issuer who does not have a place of residen~e (notdomicile)in the United States,provided such bonds were sub- jected to inhel'itance tax by Japan.; (I)Italy.-If a decedent was a national of,or domiciled in Italy,bonds issued by a corporation not organized in the United States,or by a noncorporate issuer who does not have a place of residence (not domicile)in the United States. (g)Canada.-If a decedent wasdorniciled in Canada,bonds issued by a corporation not incorporated in the United States, and.bonds inscribed or,registered by any government or municipality outside of the United States. (Continued on page 10) 059-16-77750-1 oaoss ESTATE 'SCHEDULE ,II: REAL ESTATE Did the decedent,at the time of his death,own any real estate required to be included in the gross estate?.See General Instruction J.page 4.'~Yes'0 No Item.No.Description Subsequent valua-tion date Alternate value Value at date of death ~--I------------....,-----------I-----I-----"':'--I·------1 Bouse and lot.locat.ed at 236 West Pike Street,Canonsburg,Washington County, petlnsylvania as deserlbed 1n Deed look Vol.601,page 416.Sold by Executors to Andrew Paul Grayt.ok,Jr.on May 23, 1966.Ret.uritGa at sales price $$ 5-23-66 1$000.00 19000.00 I 2 Store-Boom with apartments on Second floor and iot;located at 104 West Pike Street.,Canonsburg.Washington County, ~ennsy1vania as described in Deed Book Vol.554,p~ge 209.SOld,b~.Executors i:o aliner R.DuCarme Oil March 29,1966. Returned'at sales price 40000.00 40000.00 TOTAL (also enter under the Recapitulation,Schedule 0)$5900().OO $59000.00: (If more space 1$needed,Insert additional sheets of same size) John A.JohnstonESTATEOF . _ cSO-16-777SCl-l Schedule A-Page 7 INSTRUCTIONS FOR SCHEDULE B-Continued Examples showing use of Schedule B Example where the alternate valuation is not adopted;date -Of death,January 1,1955 Item No.Description (including face amount of bonds or number of shares)Par Unit value Subsequentvaluationdate Alternate value Value at date of death 600 400 60,000 t " •_"_I '" --------$- 1001,000 $60,000-Arkansas Railroad Co.first mortgage 4%,20-year bonds,due 1966.Interest payable quarterly on Feb.1,May 1,Aug.1,and Nov.1;N.Y.Exhange _ Interest coupons attached to bonds,item 1,due and payable on Nov.1,.1954,but not cashed atdateofdeath "_ Interest accrued on item 1,from Nov.1,1954,toJan.1,1955 _ 1 2 500 shares Public Service Corp.,common;N.Y.Exchange _ Dividend on item 2 of $2 per share declared Dec. 10,1954,payable on Jan.10,1955,to holdersofrecordonDec.30,1954 _ 100 110 I 55,000 1,000 Example where the alternate valuation is adopted;date of death,January 1,1955 Item No.Description (including face amount of bonds or number of shares)Par Unit value Subsequent valuation date Alternate value Value at date of death I 600 I 400 60,000 $ 400 600 29,700 29,400 $ 2/1/55 9/1/55 2/1/55 8/1/55 2 1 $60,000-Arkansas Railroad Co.first mortgage 4%,20-year bonds,due 1966.Interest payable quarterly on Feb.1,May 1,Aug.1,and Nov.1;N.Y.Exchange____________________________________________1,000 100 $30,000 of such bonds distributed to legatees onAug.1,1955 -"____________________________________________99 $30,000 of .such bonds sold by executors on Sept.1,1955_______________________________________________________98 Interest coupons at~ached to bonds,item 1,due and payable on Nov.1,1954,but not cashed at date of death.Cashed by executor on Feb.1,1955 _ ____ __ __________ _____ -------------------------- Interest accrued on item 1,from Nov.1,1954,to Jan.1,1955.Cashed by executor on Feb.1,1955 "____ ___ ______ _ _ -------------------------- 500 shares Public Service Corp.,common;N.Y.;Exchange____________________________100 110 55,000. I(Not disposed of within year following death_________90 1/1/56 45,000 .-~--------------------- \Dividend on item 2 of $2 per share declared Dec.I /__~_.....:::~f=_O':..r:::~~:.:g:.::..::J~~:.:~=_d.::D:.::~::::~=_~d:::30:::.2°,~n1:.:~:.:~:..:4::.~-=-1.::_~::.~-:.:~=-:::.~::.~-='-.::~::.--:.:~-=~.::~~:::-~=~=~::.-~-=--.::--:::--=-=__::.--:.2..:.:--.::--::.--:.:-=--=--:.:--:.:--'--_=1/:....:1::.;0:.;./..=5.=5-'---=1:!.,.:..00.:..0=--.!...:.-....:1.=1!.:,0:.:0.::...0 INSTRUCTIONS FOR SCHEDULE C MORTGAGES,NOTES,AND CASH The classes of property under this schedule should be listed sepa'rately in the Ol:der given. 1.-Mortgages.-State (1)face value and unpaid balance,(2) date of mortgage,(3)date of maturity,(4)name of-maker,(5) property mortgaged,and (6)interest dates and rate of inter- est.For example:Bond and mortgage for $9,000,unpaid bal- ance $6,000;dated January 1,1952,John Doe to Richard Roe; premises 22 C)inton Street,Newark,N.J.,due January 1,1960; interest payable at 6 percent per annum January.1 and July 1. 2.Promissory notes.-Show similar data. 3.Contract by the decedent to sell Iand.-Show name of vendee, date of contract,description of property,sale price,initial pay- ment,amounts of installment payments,unpaid balance of prin- cipal,and interest rate. I 4.Cash in possession.-List separately from bank deposits. 5.Cash in bank.-State name of bank and address,am~unt in each bank,serial number and nature of account,.showing whether checking,savings,time deposit,etc.If statements are obtained from banksthey should be retained for inspection by an internal revenue agent.. 6.Estate of nonresident not a citizen of the United States.-In the case of a nonresident not a citizen of the United States,a bank deposit is not regarded as situated in the United States if the decedent was not engagedin business in the United States at the time of his death.In the event the decedentwas so engaged in business,a bank deposit may,nevertheless,not be includible under the pro~isions of an applicable death duty convention. Page 10 050-16-77750-1 "-.-_.:.~.~~!I~~~~~.'~. ST~CKS ,AND BONDS • I ' 1.Did the decedent,ifa resident or citizen,of the United ,States,own 'anystocks or bonds,regardless of physical location,r!I .at the time of his death?'."--' . --D Yes D No,. z.Did the decedent,if a nonresident not a citizen of the United States,own,at the time of his death,any stocks of corpo.I • rations organized in the United-8tates or bonds situated in the United States as explained in the instructions?',DYes D No Item No. j Description (including lace amount 01 bonds or number of shares)Par Unit value,Subsequent valua·tion date Alternate value Value ai date 01 death 1-17-67 12913.65 16112.50 -I , 1-17~67 5338.00 5721.87 110.00 11],59.37 11856.25 30405.37 ..13830.65 $.. 5422.51 13146.66 21252.361-18-67 3-1-66 ..-~..... .'--,"' 3-1-66 110.00 '-.- .' ,-~20-66 11345.37 ",".r 100'sharie of Phil'tips ..~tro-' leum-cbnmcn~~d.',bl',Executors on N.Y.S~ck Bxchange on 3-1- 66.Retur:ned-citsales'priee 2 Dividend 00290 shares of 'hillips Pet.roleUm of 550 pel sbare paid on MarcJl 1.1966 tel holders of:record.on Febs:uUl 4 t-1966 .-.-(IneXudes 4ividend' on Item 6). 3 lOOshsl'es of oelleral Electric Common-Sold by Executors on N.Y.Stoek B.~ehange on ~~O-6E. ae~u~n~.at .sales.priee 4 151 shares of Soeony Mobil OilCo.-COmmon-Sold by Execu- tors on N.Y.Stodt Exchange or: 4-20-66.Returned at sales pJ:iee 5 200 eharE'ilS of Standard Oil Compa~y(uew Jezosey)-Common- Sold by Bxecutors'-of N.Y. Stock 'Exchange on 1-17-67. Returned at sales price 6 100 shares of Phillipspetm· leum-COmmcn-So1d by becutort on N..Y.Stock Exchange on 1-17-67.Re~urnedat sales price 7 286 sbares of Genera1.MO,tors- Common-Sold'by Executors on· N.Y.S~k.Bxchangeon 1"!".l8-61. R$tur~~cfat sales p~ice 8 SO shtiresof 1)u Pont »e Nemours4t,ttmOft-Sold by EXecu- tors on N.Y.Stoc:k Exchange or 1-18-67.Returned at sales pJ:iee TOTAL (also enter under the Recapitulation,Schedule 0).1 $77991.04 r$95117.88 (If more space IS needed,Insert additional sheets of same size) ESTATE OF _~~h~._~~~~~_l}~~,~~.__..,_.__..__,_.,_.,Schedule B-Page 9 c59~16-7775O-1 INSTRUCTIONS FOR SCHEDULE D' INSURANCE 1.Insurance.-Section2042 of the Code provides for the in- clusion in the gross'estate 'of (a)insurance on the decedent's life receivable by or for the benefit of the estate and (b)certain insurance on the decedent's life receivable by other beneficiaries. The term "insurance"refers to life insurance of every descrip~ tion,including death benefits paid by fraternal beneficial societies operating under the lodge system. Life insurance not includible in the gross estate under the pro- visions of section 2042 of the Code,and the Estate Tax Regulations pertaining thereto may,depe~dingupon the facts of the particular c~se,be includible urider some other section of part III of subchapter A of chapter 11 of the Code.For ex- ample,if the decedent possessed incidents of ownership'in an insurance policy on his life but gratuitously transferred all rights in the policy in contemplation of death,the proceeds would be includible under section 2035. 2.Insurance in favor of the estate.-The full amount of the proceeds of insurance on the life of the decedent receivable by the executor or administrator,or otherwise payable to or for the benefit of the estate,should be included in the gross estate. Insurance in favor of the estate includes insurance effected to provitle funds to meet the estate tax,acnd any other taxes,debts, or charges which ai:e enforceable against the estate.The man- ner in which the P9licy is'drawn is immaterial so long as there is an obligation,legally binding upon the beneficiary,to use the proceeds in payme~t of such taxes,debts,or charges.The full amount is so includible even though the premiums or other con- sideration wherewith the insurancewas acquired may have been paid by a person other than the decedent., I3.Insurance receivable by beneficiaries other than the estate.- Insurance with respect to which the :deeedent possessed inci- dents of ownership :at time of death.-The proceeds of all insur- ance on the life of the decedent not 'receivable by or for the benefit of his estate must be includedlin the gross estate if the decedent possessed!at his death any or the incidents.of owner-.!I .I'I f .".-~....-'. Page 12 ship,exercisable either alone or in conjunction with any person. Incidents of ownership'in a policy include,for example,the right of ,the insured or his estate to its economic benefits;the power to change the beneficiary,to surrender or cancel the policy,to assign it,to revoke an assignment;to pledge it for a loan,or to obtain from the insurer a loan against t,he surrender value of the policy,etc.A reversionary interest (as,-for ex- ample,if the proceeds would become payable to the insured's estate or payable as he might direct,should the beneficiar.y pre- decease him)constitutes an incident of ownership for tl\e pur- pose of the preceding paragraph,only,if immediately before the death of the decedent the value of the reversionary jnter~st ex- ceeded 5 percent of the value of thepoliCy',at that time.i I.. •'.i 4.,Execution of schedule.-Under "Description"show the~ame of the insurance company,number of policy,mime of beneficia'ry,face amount of the policy,principal amount of any indebtedness to the insurance company deductible in det~rmin ing the net proceeds,and the interest on the foregoing inqebted- ness accrued to the date of death.,'The value to be entered on Schedule D is the face amount of,the policy lessthe'indebtedness and accrued interest shown under "Description."Accumulated .d~v~dends (including interest payable thereon),post n}ortem dIVIdends,and returned premiums are tobe entered on Sc/leduleFandnotonScheduleD..i The "Life Insurance Statement,"Form 712,for eachinstuance policy listed in the schedule should be obtained from thelinsur- ance company by the executor and filed with the return.I In addition to the insurance shown onthe retu~'nas part10f the gross estate,complete information must be submitted as to any insurance on the decedent's lifewhich the executorbelieve~is not includible in the gross estate..i '..!5.Estate of nonresident not a citizen of the United St~ltes. In the case of an estate of a 'nonresident not a citizen lof the United States,the proceeds of insurance on his life need inot be included under this schedule.ii059-16-77750-1 I iI!IIII! :-'.",·f .~: SCHEDULE C .MORTGAGES~''NOTES:AND CASH Did the decedent.at the·fune of his death;own any mortgages"11otes,or cash?,"~yeg;"0 No. Item,, No. I Description, $921.91 in checking account in the'.11on Nci~ioMl Bank-Canonsburg Office-.,.: I : .SUbsfi~~eg~(~alua,I Anernate vallie'VafulIsl dale ot'death February 1966'rent was pai~in" advan:ce oft'.Item l·Schedule'A 'and 'is included in 'the amount of the above checking ~ccoun't,.Credit in the amount', of $44.5S for 'tbe period from 2-6-66 :to 3-1....66 is claimed and dedu.cted from the above checking accou~t.I Febru.a~1966'rent'was paid in' ad~ance'on %tem'2-Schedu1eA and 1s included':in the amount of the above ' cbecking'account.Credit.in 'the amOunt: .of $359,..45 for tile 'period from 2':6-6'6 to 3-1-66 is claimed and deducted ~m the above checking acCount.517.91 517.91 TOTAL (also enter under the'Recapitulation,Schedule 0)$17.91 (If more space is needed,insert additional sheets of same size) ESTATE OF ~~J!tLI!~~lP-bn~j;.~n _ t~__C59_16-77750~1 ;I Schedule C-Page 11 , c69-16-77750-1 included.Where the property was acquiredby the decedent and anothel'person or persons.by gift,.bequest,devise,or inheritance as joint tenants,and their interests·are not otherwise specified or fixed by law,then there should be included only such frac-. tional part of the value of the property'a's is obtained by divid- ing the full value of the property by the number of joint tenants. If the executor contends that less than the value of the entire property is includible in the gross estate for purposes of the tax, the burden is upon him to show his right to include such lesser value,and in such case he should make pi'oof of the extent, origin,and nature of the decedent's interest and the 'interest of the decedent's cotenant or cotenants., In every instance a statement under the column headed "De- scription"must disclose whether the whole or only a part of the property is included in the gross estate.If only a part of the property is included in the gross estate,the fair market value of the whole must be shown under "Description.'" Property in which the .decedent hel!!an interest as a tenant in common should not beJisted:under thi's schedule,.but the value of his interest therein should be returned under Schedule A,if real estate,or if personal property,under such other appropriate schedule.Similarly,community property held by the decedent and s.pouse should be returned under the appropriate Schedules A to I.The decedent's interest ina partnership should not be in- cluded under this schedule,but should be shown under Schedule F,"Other miscellaneous property." INSTRUCTIONS FOR SCHEDULE E JOINTLy"OWNED PRO'PERTY All property of whatever kind or character,whether real estate,person,al.property,bank accounts,etc.,-in which the dece- dent held at the time of his death an interest either as a joint tenant or as a tenant by the entirety,with right of survivorship, must be disclosed under this schedule.The full value of the property must be included in the gross estate,unless it can be shown that a part of the property origi" nally belonged to the other tenant or tenants and was never re- ceived or acquired by the other tenant or tenants from the de- cedent for less than an adequate and full consideration in money or money's worth,or unless it can be shown that any part of the property was acquired with consideration originally belong- ing to the surviving joint tenant or tenants.Where it is shown that the property or any part thereof,or any part of the con- sideration with which the property was purchased,was acquired by the other tenant or tenants from the decedent for less than an adequate and full consideration in money or money's worth, there should be omitted only so much of the value of the .prop- erty as is proportionate to the consideration furnished by such other tenant or tenants.For the purposes of the estate tax,a relinquishment or promised relinquishment of dower,curtesy, or of a statutory estate created in lieu of dower or curtesy,or of other marital rights in the decedent's property or estate,is not to any extent a consideration in money or money's worth. Where the property was acquired by gift,bequest,devise,or inheritance by the decedent and spouse as tenants by the en- tirety,then only one-half of the value of the property should be .'..' •j'".•'''!.'',f'.~J ....SCHEDULE Df....~""'t •• -,INSURANCE la.Was anyinsuranceonlife ofdecedentreeei';able by his estate?lb.By beneficiaries other .than"estate? DYes :IX No ;~Yes'0 No -(If moro space IS needed,Insert additional sheets of same size) . ~.Item Description Subsequent valua-:Alternate value Value at date of deathNo.tion date,. 1 policy ,No.'14-443-353 A ltetroPol'lt'.an .$$ Life ];ftsuxance Co.1\-"'Ibole life Paid,..,up Policy on li.fe of .;John A.Johnston•.'.. 'ace,Val~c;1,$4000.00.Beneficla~$..es ~re , -lobo,A.Johnston~Jr.$1438.07 Wesley Gr~er Johnst:on $143$.06 David,Gales Johnston _$1438.06 ,3...3-66 4314.19 4314.19 I , , , , i , , , , ; -TOTAL (also enter .underthe Recapitulation,Schedule 0)-$4314.19 $4314.19 " z.Was there any insuranc~oDthe'decedtmfs life which is not included in the return as a part of ,the gross estate? DYes ·lB No 'If "Yes"a complete explanation as to all·suchin.surance must be :~bmitted' ESTATE 'OF ~~~!'t_~_!~~~~~~9"~~~_·Schedule D-Page 13 .59-16-77750-1 INST1lUCTIONSFOR SCHEDULE F OTHER MISCELLANEOUS 'PROPERTY.'..r ..-- Under this schedule list all items of the gross'estate'not returnable under any other schedule,such as the following: Debts:due the decedent;interests in business;insurance on the life of another;accumulated dividends (including interest pay- able thereon),post mo:r:tem dividends,and returned premiums on the insurance policies listed on Schedule D;claims;rights; royalties;pensions;,leaseholds;judgments;reversionary or remainder interests;shares in trust funds;household goods and personal effects,including wearing apparel';farm products and growing crops;livestock;farm machinery;automobiles; etc. When an interest in a copartnership or unincorporated busi- ness is returned,submit a statement of assets and liabilities as of the valuation ,date and for.the 5 years.preceding,.and state: ments of the net earnings for the same 5 years.Goodwill must be'accounted for.In general,the same information should be furnished and the ·same methods followed as in valuing close corporations.Se.e instructions for Schedule B on page 8. /'.....'i)i Page 16 , In case of an interest in a trust fund,a copy of the trust instrument should be subplitted. Where decedent owned!insurance on the life of another, Form 938,Life Insurance Statement,maybe obtained from the insurance company by the executor and filed with the return. Estate of nonresident not a citizen of the United States.-In the case of a nonresident not a citizen of the United Statesworksofartwhichwere.(1).importedinto .the United States solely for exhibition purposes,(2)loaned for such purposes to a public gallery or museum,no part of the net earnings of which inUl>es to the ·benefit ·of any .privatestockholderor individual,and (3)at the time of the death of the owner,on exhibit,or en route to or from exhibition,in such·a public gallery or museum,are 'not·includible in this schedule·as situated in·the United States. ,o5g,-16-77750-1 ~......o.-......dIIIIIIII .SCHEDULE E.~- JOINTLY OWNED PROPERTY.~.-t I '~,~'• .1.Did the decedent,at the time of his death,own any property as a joint tenant or as a tenant by the entirety, with right qf,survivorship?."..O·Yes ~No . ,If "Yes,"state the name and address of each surviving cotenant. NAME ADDRESS (Number,street,city;State,a'nd Pil#al ZII'code) I.:J 'J J •• Value at date 01 cieat~ $ ~...... Alternate value $' Subsequent valua-tion date '",... •Description • I .NONE Item No. I I IP I I' r I t· I I I' I TOTAL (also enter under the Recapitulation,Schedule 0)$NOQ (Ifmore space is needed,insert additional sheets of same size) ESTATE OF ~~~~__~~__~-_~~~~~~~._Schedule E-Page 15 059-16-77750-1 ~------- INSTRUCTIONS FOR SCHEDULE G TRANSFERS DURING DECEDENT'S LIFE In accordance with the provisions of sections 2035-38 of the Code,the following transfers made by the decedent during his life,by trust or otherwise,other than bona fide sales for an adequate and full consideration in money or money's worth, are subject to the tax,and must be included in the gross estate under this schedule: (1)Transfers made in contemplation of death.-Transfers by dece\ients are,unless shown to the contrary,deemed to have been made in contemplation of death,if they were made within 3 years prior to death.However,no transfer made prior to the . 3 years immediately preceding the decedent's death shall be deemed a transfer in contemplation of death. (2)Transfers made on and after September 8,1916,taking effect at the decedent's death. A transfer made by the decedent taking effect at his death is one under which.possession or enjoyment of the property can be obtained only by surviving the decedent.However,such a transfer is not treated as a 'transfer taking effect at death unless the decedent retained a reversionary interest in the property which immediately before his death had a value in excess of 5 percent of the value of the transferred property. In the case of such a transfer made before October 8,1949,thereversionaryinterestmusthavearisenbytheexpresstermsof the instrument of transfer.. (3)Transfers whereby the decedent retained the possession or enjoyment of,or the right to the income from the transferred property if the transfer was made: (a)After March 3,1931,and the retention is for his life,or for any period which does not in fact end before his death; or (b)After June 6,1932,and the retention is for his life,or for any period not ascertainable without reference to his death or for any period which does not in fact end before his death. (4)Transfers (not otherwise includible)whereby the dece- dent retained the right to designate the person or persons who shall possess or enjoy the transferred property,or the income therefrom if the transfer was made: (a)After March 3,1931,and the right to so designate was retained by the decedent alone,for his life,or for any period which does not in fact end before his death;or (b)After June 6,1932,and the right to so designate was retained by the decedent,either alone or in conjunction with any person,for his life or for any period not ascertainable without reference to his death or for any period which does not in fact end before his death. (5)Transfers whereby the enjoyment of the transferred property was subject at decedent's death to any change through the exercise of a power to alter,amend,revoke,or terminate, as follows (unless the decedent was,for a continuous period beginning on or before September 30,1947,and ending with his death,after August 16,1954,under a mental disability to re- linquish a power as described in section 20.2038-1 (f)of the regulations): (a)In case the transfer was made before 4:01 p.m.,east- ern standard time,June 2,1924,and the power was reserved at the time ofthe transfer and was exercisable by the decedent alone or in conjunction with a person having no substantial adverse interest in the transferred property, (b)In case the transfer was made after 4:01 p.m.,eastern standard time,June 2,1924,and before June 23,1936,and the power was reserved at the time of the transfer and was exercisable by the decedent alone or in conjunction with any Page 18 person (regardless of whether such person had a substantial adverse interest in the transferred property),or (c)In case the transfer was made after June 22,1936,re- gardless of whether the power was reserved at the time of the transfer or later created or conferred,and without regard to' the source from which the power was acquired,regardless of whether the power was exercisable by the decedent alone or in conjunction with any person,and if in conjunction with any person,regardless of whether such person had a substan- tial adverse interest in the transferred property. (6)Transfers effected by the relinquishmentin contemplation of death of his power to alter,amend,revoke,or terminate a . transfer of property previously made by the decedent under conditions set forth in the preceding subparagraph (5).Such transfers will not be considered to have been made in contem- plation of death unless they were made within 3 years prior to death. For more detailed information,see the Estate Tax Regu- lations. Transfers included in the gross estate should be valued as of the date of the decedent's death or,if the alternate valuation is adopted,in accordance with section 2032 of the Code.If only a portion of the property is so transferred as to come within the terms of the Statute,only a corresponding proportion of the value of the property should be included in the value ofthe gross estate.If the transferee makes additions to the property,or betterments,the enhanced value of the property at the valuation date,due to such additions or betterments,should not be included under this schedule.However,where only a portion of the value of the property is included,the value of the whole must be disclosed under the column headed "Description,"together withanexplanationoftheproportionateinclusion. To constitute a bona fide sale for an adequate and full con-sideration in money or money's worth,it must have been made in good faith,and the price must have been an adequate and full equivalent andreducible to a money value.Ifthe price was less than an adequate and full equivalent,only the excess of the fair market value of the property,as of the valuation date, over the price received by the decedent should be included in the gross estate.For the purpose of the estate tax the relinquish- ment or promised relinquishment of dower,curtesy,or of a statutory estate created in lieu of dower or curtesy,or of other marital rights in the decedent's property or estate,is not to any extent a consideration in money or money's worth. All transfers made by the decedent within 3 years prior to the date of his death of a value of $1,000 or more and all transfers (other than outright transfers not in trust)·made by the dece- dent at any time during his life of a value of $5,000 or moreexceptbonafidesalesforanadequateandfullconsideration,in money or money's worth must be disclosed in the return, whether the executor regards such transfers as subject to the tax or not.If the executor believes that such a transfer is not subject to the tax a statement of the pertinent facts should be made. In case a transfer,by trust or otherwise,was made by a written instrument,a copy must be filed with the return.If of public record,the copy should be certified;.if not of record,the copy should be verified. The name of the transferee,date and form of transfer,and a complete description of the property should be set forth in this schedule.Rents and other income must be included as explained under "Execution of Return"in the "General Instructions." Nonresident not a citizen of the United States.-Ifthe decedent was a nonresident not a citizen,the transfer must be included if the property was situated in the United States,either at the date of the decedent's death or at the date of the transfer. .56-16-77750-1 I..... "··SCHEDULEr OTHER MISCELLANEOUS PROPERTY 1.Did the decedent,at the time of his death,own any interest in a copartnership or unincorporated business?o Yes ~No 2.Did the decedent,at the time of his death,own any miscellaneous property not returnable under any other schedule? ~Yes 0 N.o 3.Was there any insurance which"the decedent owned on the life of another which is not included in the return as a part of the gross estate? If "Yes,"full "details must be submitted under this schedule."."0 Yes ~No 4.State whether the decedent's estate,his spouse,or any other person,has received,or will receive,any bonus or award as a result of the .decedent's employment or his death."If "Yes,"full details must be submitted under this schedule.0 Yes ~No ItemNo Subsequent valua- tion date Alternate value Value at date of death 1 Refund of 1965 Income 'lax Declara~lon $$ paie!prior to death ~-17-66 286.00 286.00 2 Claim 8galUi:Ma~thew L.Zimmer ~-24-66 400.00 400.00 3 Refun4 of premium from M$trepo1itan Life Xuurance Compi!lny 3-12-66 152.72 152.72 4 Debt:of Wesley Greer Johnstonaue decedent.Distributed to Wesley Greer Johnston on April 9"1966 14-9...66 31909.95 31909.95 5 Value on 2-6-66 of prepaid fire and liabi.lit.y insurance policles in effect on I~2-ScheduleA 2-6-67 145.59 145-59 6 Value on 2-6-66 of prepaid Homeowner's Policy in effect on Item l-Schedule A 2-6-67 61.00 61.00 7 Social Security 3-9-66 168.00 168..00 ESTATE OF J.ob..n__A!',__!lobMt.~n______________________________________________Schedule F-Page 17 (If more space is needed,insert additional sheets of same size) TOTAL (also enter under the Recapitulation,Schedule 0)$33123.26 $33123.26 c5A-Ur-77750-1 I, IiI I I I I~------------- 'INSTRUCTIONS'FOR SCHEDUL"E H---- POWERS OF APPOINTMENT 1.General.-There is includible in the gross estate under this only in conjunction with (a)the creator of the power,or schedule the value of certain property with respect to which'(b)a:person having a substantial interest in the property the decedent possessed a general power of appointment at the •subject to the power,whicn is a~versEnothe exercise of the time qf his death,or with respect to which he once possessed power in favor ofthe 'decedent.' a general power ofappointment and exercised or released that (4)If (after the 'application''of (3»'a power createdpo~er prior to his death by a dispo!lition of such a nature that"after October 21,11M2;IS ~ig~nerarpower;and itis exercisable If It were a trans~er of property owned by,the decedent,such ,by the decedent only in conjunction with another person property would be includible in his gross estate.A general,-but '(in addition to being exercisable'in favor of the decedent, power of appointment is desc'ribed below.If the decedent ever his estate,his creditors,or the creditors of his estate)is possessed a general power of appointment,the ~xecutor should exercisable in favor ofsuch'other Person,the power is deemed examine the re&"Ulations issued pursuant to section 2041 ~f the''a general .power only in respect of a fraction!!,l pa'rt of t~e Code to ascertam whether the value of the property subJect to property subject to such power.The fractIOnal part IS that power is includible in the gross estate.determined by dividing the value of such property by the 2..Definition of ap.ower of appointment and a general power,number of persons (inclUding the decedent)in favor of appointment.-The term "power of appointment"includes all of whom such power is exercisable. powers which are in substance and effect powers of appointment 3.Date of creation ofpower.-A power ofappointment created regardless of the nomenclature used in creating the power or by will is,in general,considered as created on the date of the of local property law connotations.For example,if a settlor testator's death'howevel',a power of appointment created by transfers property in trust for the life of his wife,with a power a will executed 'on or before October 21,1942,is considered a in the,wife to appropriate or,consume the principal of the trust,power created on or before that date if the person executing the WIfe has a power of appomtment.the will died before July 1,1949,without having republished the The term "general power of appointment"means a power will,by codicil or otherwise,after Octobei'21,1942.A power which is exercisable in favor of the decedent,his estate,his of appointment created by 'an inter vivos "instrument is con- creditors,or the creditors of his estate,with the following sidered as created on the date the instI'ument takes effect.If exceptions:the holder of a power exercises it by creating a second power, (1)A power to consume,invade,or appropriate property the s~cond power is considered as created at the time of the for the benefit of the decedent which is limited by an ascer-exerCIse of the first. tainable standard relating to health,education,support,or 4.Supplemental data.-If the decedentever possessed a power ,maintenance of the decedent is not a general power of of appointment,a certified or verified copy of the instrument _appointment.,granting ,the.,power,togethei'with"a certified or verified copy (2)A power created on or before October 21,1942,which of any instrument by which the power was,exercised or released, is exercisable by the decedent only in conjunction with an-must be filed with the return.These copIes must be filed even ,other person is ,not a general power of appointment.,though it is ~ontended that the power was.not a gene~al (3)A power created aft.er.O~tober ~1,1942,is not a gen-power,of a;ppomtment,and that the property IS not otherWIse eraI power of appointment If It IS exercIsable by the decedent IncludIble m the gross estate. INSTRUCTIONS FOR SCHEDULE I ANNUITIES 1.General.-Except as otherwise provided under"Annuities the decedent,if they were made by the employer b~reason of under approved plan,"there shall be included in the gross the decedent s eml?loy~ent.For.further mfo~atIon see the estate under this schedule all or a portion of an annuity or estate tax regulatIOns Issued pursuant to sectIOn 2039 of the other payment receivable by any beneficiary following the death Code. of the decedent under a contract or agreement which satisfies 3.Definition.-The term "annuity"includes periodic payments the four conditions set forth below.It should be noted that for a specified ,period of time.The following are examples of condition (d)is satisfied if the contract or agreement satisfies contracts (but not necessarily the only forms of contracts) either clause (i)or clause,(ii)thereof.The conditions are:providing for payments which constitute annuities or other (a)The contract or agreement is not a policy of insurance payments for the purpose of inclusion in this schedule:, on the life of the decedent.(a)A contract under whjch the decedent immediately (b)The contract or agreement was entered into after before his death was receiving,or was entitled to receive, March 3,1931.for the duration of his life an annuity or other stipulated (c)The annuity or other payment is receivable by the payment,with payments thereunder to continue after his beneficiary by reason of the beneficiary's having survived death to a designated beneficiary,if surviving the decedent. the decedent.(b)A contract under which the decedent immediately (d)Under the contract or agreement-before his death was receiving or was entitled to l;eceive, (i)an annuity or other payment was .payable to the together with another person,an annuity or other stipulated decedent,either alone or in conjunction with another,for payment payable to the decedent and the other person for, his life or for any period not ascertainable without refer-their joint lives,with payments thereunder to continue to ence to his death or for any period which did not in fact the survivor following the death of either. end before his death,or (c)A contract or agreement entered into by the decedent (ii)the decedent possessed the right to receive the an-and his employer under which the decedent immediately be- nuity or other payment,either alone or in conjunction with fore his death and following retirement was receiving,or another,for his life or for any period not ascertainable was entitled to receive,an annuity or other stipulated pay- without i'eference to his death or for any period which did ment,,payable to the decedent for the duration of his life and not in fact end before his death.thereafter to a designated beneficiary,if surviving the dece- It is immaterial whether the annuity or other payments to dent,whether the payments after the decedent's death are the survivor are payable in a lump sum or in installments and,fixed by the contract or subject to an option or election exer- if payable in installments,whether the installments to the cised or exercisable by the decedent.However,see "Annui- survivor are in the same amount as,or in a greater or lesser ties under approved plan." amount than,the annuity or payments to the decedent.The (d)A contract or agreement entered into by the decedentvalueoftheannuityorotherpaymenttothesurvivoristheandhisemployerunderwhichatthedecedent's death,prior value thereof immediately following the decedent's death.to retirement or prior to the expiration of a stated period of 2.Portion includible.-Where the decedent contributed only a time,an annuity or other payment was payable to a desig- portion of the purchase price of the contract or agreement,nated beneficiary if surviving the decedent.However,see there is included in the gross estate only that portion of the "Annuities under appi'oved plan." value of the annuity or -other payment receivable by the sur-(e)A contractor agreement undel'whiCh the decedent viving beneficiary which the decedent's contribution to the ,pur-immediately before his death was receiving,or was entitled chase price of the annuity or agreement bears to the total to receive an annuity or other payment for a stated period 'purchase price thereof.For example,in a case where the value of time ~th the annuity or other payment to continue to a of the survivor's annuity was $20,000 and the decedent had 'designa'ted beneficiary,upon the decedent's death prior to the contributed t~ree-f~)Urt~sof the pur~hase price of the contract,expiration of that period of time,if surviving the decedent. the a~ount m~ludlble IS $~5,000 ,<.%,x $20,000).Except a~4.Annuity under approved plan.-Special rules are providedother~lse.prOVIded under AnnUItIes under approved ,plan,in the case of an annuity or other payment under:contrIbutIOns made by the decedent's employer to the purchase ,','' ,p£ice,of·the contract or ,agreement are considered as made by (Continued on page 22).. Page 20 .59-16-77750-1 l to .~:,"•.}.t -_.SCHEDULE G TRANSFERS DURING DECEDENT'S,LIFE 1.Did the decedent make any transfer described in the first paragraph (including the six subparagraphs)of the instructions for this s~hedule?"I '.0 Yes ~No Zo..Did the decedent,.at any time,make a .transfer (other than,an outright transfer not in trust)of an amount of $5,000or more without an adequate and full consideration in money or money's worth,but not believed to be includible in the gross estate a's'indicated in the first paragraph (including the'six subparagraphs)of the instructions for this.schedule? If "Yes,"furnish 'the following information:,0 Yes ~No Zb:Date ZC.,Amount or value'Zd.Character of transfer 30.Did the decedent,within 3 years,immediately preceding his death,make any transfer of his property without an adequate and full'consideration in money or money's worth?.''V1 If "Yes,"and the trq.nsfer was of an,amount of $1,000 or more,furnish the follOWing information:~Yes 0 No 3b.Date . .3c:.Amount,or value 3d.Ch~ractero!eatransfer ~.1 .".See Gift .'See 'Gift'o.llowew rou\i4nepa~ternof-giving to ~RetuXft8 'TaX 'ae~\lrns Children fox last 13 years:' 3e.Motive which actuated decedent in making transferLoveand·affection for (lecedent's family 4.Were there in existence at the time of the decedent's death any trusts created by him during his lifetime?,I o Yes ~No 5.If a Federal~ift tax return(sJ was ever file~state the year(~covered and the Internal Revenue district iri'Vfhich filed...'1952-19S3-19:)4-19S5...19S6....l~51-195B-1959-1960-19 61-1962-1963-1965 Pittsburgh,Pa. ItemNo.Description Subsequent valua·tion date Alternate value Value at date 01 death 1 All transfors made by the dececleJ'1; w1~in ti'lrce years prior to the date 'of his death of a value of $1000.00 or,more and all 'uansfers made by the deC:e4ent at 8ft;yt.ime cluring his 11feo£~value of'$SOOO..OO or more are disclosed in detatlin the above lis~ed gi.tt tax X'~turn8 filea~The Bxeeut.ors 'believe anel thorefore contend that none of ouch. transfers is subject.to Federal Estate 'lax fOr the reason that they were all - made pursuant 'to an established pattern of qiving every year to bie family over a period of the last 13 yaars aDd were - not.made in eon~la1tloll of death but: out of love and affection for h1sfamily, 1Jbis statement is made by Bxecu1:orswith the declaration that 11:is made under penalties of perjury. TOTAL (also enter under the Recapitulation,Schedule 0) (If more space is needed ,insert additional sheets of same size $Rone $ $None ESTATE OF ~~~~_~~_~~~~_~~~_ cS9-1G-77750-1 Schedule G-Page 19 INSTRUCTIONS FOR SCHEDULE I-Continued (a)An employee's trust (or under a contract purchits'ed ' by an employees'trust)forming part of a pension,stock bonus,or profit-sharing plan which met all of the require- ments of section 401 (a)of the Code,either at the time of the decedent's separation from employment (whether by death or otherwise)or at the time of the termination of the plan if earlier; (b)A retirement annuity contract purchased by an em- ployer (but not by an employees'trust),pursuant to a plan which,at the time of the decedent's separation from employ- ment (by death or,otherwise),or at the timeof the termination of the plan if 'earlier,was a plan described in section 403 (a); or (c)A retirement annuity contract purchased for an em- ployee by an employer which is an organization referred to in section 503 (b)(1), (2),or (3)of the Code,and which is exempt from tax under section 501 (a)of the Code. Where the annuity or other payment described above is receivable by a beneficiary other than the executor and the decedent made no contributions under the plan toward the cost thereof,no portion of the annuity oi'other payment is includible in the gross estate.If the decedent made a contribution under the plan toward the cost thereof,there shall be included inthisscheduleofthereturnthatproportionoftheannuityor other payment which an amount A (the amount of the dece- dent's contribution under the plan)bears to B (the total amount of all contributions under the plan).The decedent's contribu- tions under a plan which satisfies the requirements set forth in (a)or (b)do not include any amounts contributed by the employer under the plan,but in the case of (c),employer's contributions in excess of the amounts excludable from gross income of the decedent under section 403 (b)are considered to have been contributed by the decedent.However,contribu- tions or payments on behalf of the decedent while he was a self- employed individual made under a trust or plan described in paragraph (a)or (b)above shall be considered to have been made by the decedent.,If any portion of the annuity or other payment is receivable by the executor,it is includible in the gross estate under this schedule to the extent that itis receivable by the executor in his capacity as such.In general,the an- nuity or other payment is receivable by the executor if it is to be paid to him or if there is an agreement (expressed or im- plied)that it will be applied by the beneficiary for the benefit ,of the estate (such as in discharge of the estate's liability for" death taxes or debts of the decedent,etc.)or that its distribu- tion will be governed to any extent by the terms of the dece- dent's will or the laws of descent and distribution.If data available to him does not indicate whether the plan satisfies the requirements of section 401 (a)or 403 (a),the executor may obtain information relative thereto from the district director of internal revenue for the district in which the employer has his principal place of business.For further details,see the estate tax regulations issued pursuant to section 2039 of the Code. 5.Execution of schedule.-In describing an annuity,the name and address of the grantor of the annuity should be given,or if payable out of a trust or other fund,such a description as will fully identify it.If payable for a term of years,the duration of the term and the date on which it began should be given,and if payable for the life of a person other than the decedent,the date of birth of such person should be stated. INSTRUCTIONS FOR SCHEDULE J FUNERAL EXP-ENSES AND EXPENSES INCURRED IN ADMINISTERING PROPERTY SUBJECT TO CLAIMS Funeral expenses and expenses incurred in administering property subject to claims should be itemized,giving names and addresses of persons to whom payable,and exact nature of the particular expense.Expenses incurred in administering property not subject to claims should not be listed on this schedule.In connection with such expenses,see the instructions for Schedule L. The total deduction for executors'commissions should be entered at item 1,the total deduction for attorneys'fees should be entered at item 2,and the deductions for funeral expenses and miscellaneous administration expenses should be itemized under the designated sections of the schedule.An item may be entered for deduction though the exact amount is not known at the time the return is filed,provided it is ascertainable with reasonable certainty,an~will be paid.No deduction may be taken upon the basis of a vague or uncertain estimate.Pre- serve all vouchers and receipts for inspection by an internal revenue agent. The executor or administrator,when filing the return,may deduct his commissions in such an amount as has actually been paid or which at that time it is reasonably expected will be paid,but no deduction may be taken if no commissions are to be collected.In case the amount of the commissions has not been fixed by decree of the proper court,the deduction will be allowed on the final audit of the return provided:(1)that the district director is reasonably satisfied that the commissions claimed will be paid;(2)that the amount entered as a deduc- tion is within the amount allowable by the laws of the juris- diction wherein the estate is being administered;and (3)that it is in accordance with the usually accepted practice in said jurisdiction in estates of similar size and character.If thecommissionsclaimedhavenotbeenpaidatthetimeofthefinal audit of the return,the amount deducted must be supported by an affidavit,or statement signed under the penalties of perjury. of the executor stating that such amount has been agreed upon and will be paid. A bequest or devise to the executor in lieu of commissions is not deductible.If,however,the decedent fixed by his will the compensation payable to the executor for services to be ren- Page 22 dered in the administration of the estate,deduction may be taken to the extent that the amount so fixed does not exceed the compensation allowable by the local law or practice. Amounts paid as trustees'commissions should not be listed. on this schedule whether received by the executor acting in the capacity of a trustee or by a separate trustee as such.For the deduction of such amounts incurred in administering prop- erty not subject to claims,see the instructions for Schedule L. When filing the return there may be deducted such an amount of attorneys'fees as has actually been paid or whichatthattimeitisreasonablyexpectedwillbepaid.If on the final audit of the retUl'11 the fees claimed have not been awarded by the proper court and paid,the deduction will be allowed, provided the district director is reasonably satisfied that the amount claimed will be paid and that it does not exceed a reasonable remuneration for the services rendered,taking into account the size and character of the estate and the local law and practice.If the fees claimed have not been paid at the time of the final audit of the return,the amount deducted must be supported by an affidavit,or shltement signed under the penalties of perjury,of the executor or the attorney stating that such amount-has been agreed upon and will be paid. Attorney's fees incidental to litigation instituted by the beneficiaries as to their respective interests do not constitute a proper deduction,inasmuch as expenses of this character are properly charged against the beneficiaries personally and are not administration expenses as contemplated by the statute. For the deduction of attorney's fees incurred in administering property not subject to claims,see the instructions for Sched- ule L. Executors should note that executors'commissions constitute taxable income. Section 642 (g)of the Code provides that amounts allowed under section 2053 or 2054 as deductions in computing the taxable estate of a decedent are not allowable as deductions in computing the taxable income of the estate for income tax purposes. c50-16-77750-1 ..,G~-- SCHEDULE H ,POWERS OF APPOINTMENT la.Did the decedent,at the time of death,possess a general power of appointment creat~d aft~rOctober21,1'942?0 Yes KJ N~lb.On or before such date?0 Yes IjC No Za.Did the decedent,at any time,by will or otherwise,exercise or release (to any Zb.On or before such date? e~ten:t)a generql po~er oLapPoi1'!tmentcreatedo:£~~r Octo~r 21,1942?0 Yes iii No C)Yes iii No 3.Were there in existence'at the time of the decedent's death any trusts not created by him under which he possessed any power,beneficial interest,'or"trusteeship?'0 Yes iii No . (If more space IS needed,Insert additional sheets of same SIZe) Item Description Subsequent valua-Alternate.value Value at date of deathNo.,tion date--- I $$... t ..I .' ;".".,. .'.. , TOTAL (also enter under the Recapitulation,Schedule 0)$.None $None "" SCHEDULE I ANNUITIES la.Was the decedent,immediately before his death,receiving an annuity as described in paragraph 1 of the instructions?0 Yes XI No lb.If ",Yes,"was that annuity paid pursuant to an approved plO.n as described in paragraph 4 of the instructi0t:ls?0 Yes 0 No Ie:.If the answer to "lb."is "Yes,"state the ratio of the decedent's contribution tCi>the total purchase price of the annuity. Za.If the decedent was employed at the time of his death,did an annuity or other payment as described in paragraph 3(d)of the instructions become payable to any beneficiary by reason of the beneficiary's having survived the decedent?.0 Yes Zb.If "Yes,"state the ratio of the decedent's ~ontributionto the total purchase price of the annuity. il No (If more space IS needed,Insert addlbonal sheets of same size) , .Item Description Subsequent valua·Alternate value Value at date of deathNo.tion date.1 $$ .. TOTAL (also enter under the Recapitulation,Schedule 0)$None $None , .. Schedules Hand J-Page 21 059-16-77750-1 INSTRUCTIONS FOR SCHEDULE K DEBTS OF DECEDENT Itemize under "Debts of Decedent"only valid debts of the decedent owed by him at the time of death.Any such indebted- ness secured by a mortgage or other lien upon property of the gross estate should be listed separately under the heading of "Mortgages and Liens."If the amount of the debt is dis.puted or the subject of litigation,only such amount may be deducted as the estate concedes to be a valid claim.If the claim is contested,that fact should be sta~d. If the claim against the estate is founded upon a promise or agreement,the deduction therefor is limited to the extentthatthe'liability was contracted'bona,fide,and'for an adequate and full consideration in money or money~s,worth,except that any such enforceable claim founded upon a pr'omise or agree- ment of the decedent to.makea,contribution or gifL(such as a pledge or a subscription)..to or'for the use of a charitable,public,i'eligious,etc.,organization is deductible to the extent that such a deductjon would be allowable as a bequest under the'applicable statute. The deduction for propel:tY,taxes is limited to such taxes as accrued prior to the date of the decedent's death.Federal taxes on income received during decedent's lifetime are de- ductible,but taxes on income received after death are not deductible.j Enter in this schedule notes unsecu'red by mortgage or other lien and give full details,including name of payee,face and unpaid balance,date and term of note,interest rate and date to which interest was paid prior to de~th.Care must be taken to state the exact nature of the claim as well as the name of the creditor.Ifthe claim is for services rendered over a period of time,state the ,period,covered liy the claim.Example: Edison Electric Illuminating Co.,fQ'r electric service during December 1954,$25.' If the amount of the claim,is the unpaid balance due on a'contract for the purchase of any property of the gross estate, indicate the schedule and item number where such property is returned.If the claim represents a joint and several lia- bility,the facts must be fully stated and the financial respon- sibility of the co-obligor explained. All vouchers or original records should be preserved for inspection by an internal revenue agent. ALLOWABLE DEATH TAXES ,Where an election is made to take a deduction under section 2053 (d)rather than a credit unde!;section 2011 or section 2014,such deduction is subject to certain limitations.If any difficulty is experienced in computing the deduction,a request for the computation of the deduction may be submitted (a Page 24 reasonable time before the due date of the return)to the Com- missioner of Internal Revenue,Washington,D.C.,20224.Such request should be accompanied by a copy of the will and all relevant documents,a statement showing the distribution of the estate under the decedent's will,and a computation of the state or foreign death tax showing the amount payable by charJ.ty. MORTGAGES AND LIENS -Itemize under "Mortgages and Liens';,only obligations se- cured by mortgages or other liens upon property included in the gross estate'at the full value thereof,or the value of the property undiminished by the amount of the mOl'tgage or lien. If decedent's estate js liable for the alllount of,the,indebtedness secured by such mortgage or lien (i.e.,if the indebtedness is .enforceable against other property of the estate not subject to such mortgage or lien,or if the decedent was :personally liable therefor),the full value of the property subject to the mort- gage or lien must be included in the gross estate uridei:the appropriate schedule.However,if decedent's ,estate is not so liable,only the value of the equity of redemption (or value of ,the property less the amount of such indebtedness)need be included in the gross estate.Where the decedent's estate is not liable for the amount of a debt secured by a mortgage or lien and the amount of the debt is,gr!later t~an the va~ue of ,the property subject to such mortgage or lien,it is not pos- sible to obtain a deduction for the full amqu,nt of the debt by entering the full value of the property as a part of the grossestateandthendeductingthefullamountof'the debt under this schedule.Notes and other obligations s,ecured by the deposit of collateral,such as stock~~bonds,etc.,als'o"should ,be listed under "Mortgages and Liens." Identify,by indicating under the column headed "Descrip- tion,"the particular schedule and item number where such pro,perty subject to the mortgage or lien is returned under the gross 'estate. In any case where real property situated outside the United States does not form a part of the gross estate,of a decedent, citizen or resident of the United States,no deduction may be taken of any mortgage thereon,or any indebtedness in respect thereto. Show the name and address of the mortgagee,payee,or obligee,and the date and term of the mortgage,note;or other agreement under which the indebtedness is established.Show the face amount,the unpaid balance,the rate of interest,and date to which the interest was paid prior to the decedent's death.Mortgages upon,or any indebtedness with respect to,prop- erty included in the gross estate is deductible only to the extent that the liability was contracted bona fide and for an adequate and full consideration in money or money's worth. 059-15-77750-1 :I '1 DEDUCTIONS SCHEDULE J .FUNERAL EXPENSES AND EXPENSES.INCURRED INi. ADMINISTERING PROPERTY SUBJECT TO CLAIMS NOTE.-Donot list onthis schedule expenses 6f administering property not subject to claims.In connectionwith such expenses,see Schedule L. .If executors'commissi~ns,attorneys'fees,etc.,are claimed and allowed as'a deduction for estate tax purposes,they are not allowable as a deduction in computing the taxable income of the estate for Federal income tax purposes. Item No. A.Funeral expenses: Description $ Amount 1 w.Leonard Griffith hneral Home 164 Weat Pike Street,Canonsburg,-Pennsylvania Funeral 2 oak Spring cemetery Co.-Opening and Closing Grave 3 Gaydos Monument -Grave Marker 1409.00 90.00... ·80.00 96.00 50.00 474.36 1062.45 225.00 Total." . . . . . . . . . . . . . . ...x x x x x x 'x x $..__~S_7.9 ..'O'O__ B.Administration expenses: 1 Executors'commissions-amount estimated/agreedupon/paid.(Strike out words not appli· cable). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...x x x x x x x x'__:UODe._ 2 Attorneys'fees "-tbtIIIlIagreed upon~(Strike out words not applicable)..x x x x x x x x -----.1.000.00-- 3 Miscellaneous expenses : . . . . . . . . . . . ..._ PrQba~e of Will -Advertising letters ~estamentary -Short.Certificates -Cert.ified copy of Will -Coat of filing Inventory and Account 4 Set1mated future admlnist~ationexpensos to be incurred in set.tlement of estate 5 ~eD8e of sale of Item I-Scbedule A 6 BxpoftSe of $810 of Item 2-Schdenle A 7 Bachrach,Banderbeck ..Co.-.,AcCOUD~ing Total miscellaneous expenses.. . . . . . . . . . . . . . ...x x x x x x x x 1907.81 TOTAL (also enter under the Recapitulation,Schedule 0)$10486.81 (Ifmore space is needed,insert additional sheets of same size) ESTATE OF ~Q..~~~.'!._.Jph~_tQn . . _ 059-10-77750-1 Schedule I-Page 23., iNSTRUCTIONS FOR SCHEDULE L I t~. J '" ..........." Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims NET LOSSES DURING ADMINISTRATION E~_E~S~S)NCURRED IN ADMINISTERING PROPERTY NOT SUBJECT TO CLAIMS Itemize under}'Expenses incurred in-administering property not subject to claims"amounts representing expenses incurred in administering property included in the gross estate but not subject to claims.Such-amounts are-deductible only if paid before'the expiration of the period of limitation for assessment provided,in section 6501 of the Code.i The names and addresses of persons'to whom payable and the exact nature of,the particular expense should be stated. The property with respect to which the expense was incurred should be identified by indicating the schedule and item num- ber where such property is returned under the gl:OSS estate. An item may be entered for deduction though the exact amount is not known at the time,provided it is ascertaimibl~with reasonable certainty,and'will be paid before the exp~ration of the-period of limitat\o,n.for assessment ref~lTed to ;above. No deduction may be taken upon the basis of'a vague or,uncer- tain estimate.Preserve alL vouchers and receipts for inspec-tion by an internal revenue agent. The expense's'contemplated under-this schedule include such items aS,principal commissions paid in respect of trust pl;operty included in the gross estate,and attorneys'fees incur'red to .cont!lst the inclusion of trust ,property.in,the decedent's gross,estate.-, -:,-" t~p 069":;;;16-77;750--:1 • I"...!.. If the alternate valuation is aqopted,deduction.for any loss is limited to the extent that such loss is not in effect allowed in the valuation of the item in the gross estate, Losses are strictly limited to those arising from fire,storm, shipwreck,or other casualty,or from theft,to the extent that' such losses-are not compensated for by insurance or otherwise. Losses in order to be deductible must occur during the settle- ment of the estate.Such losses are not deductible if,at the time of the filing of the estate tax return,they had been claimed as a deduction in a Federal income tax return.Depreciation in 'the-value of securities or othe'r ,property does not constitute a deductible loss.In listing losses,full particulars must be given as to the loss sustained and,the cause thereof.If insur- ance or other compensation was received on,account of loss, state the amount collected.The property with respect to which the loss is claimed should-be identified by indicating the particular schedule and item number where such property is return~d under the gross es~at~. " /'~ '\'. , I i: I,. SCHEDULE K DEBTS OF DECEDENT AND MORTGAGES AND LIENS ItemNo.Debts of Decedent-Creditor aDd nature of claim,and allowable death taxes Amount 1 1965 BoJ:Ough Tax on Item I-Schedule A $ 2 1965 Borough ftx on Item 2-Schedu1eA 3 Columbia Gas Co.-Beat prior to 2-6-66 on Item 2-Sche4ule A 4 W$at Penn'Power-Light prior to 2-6-66 on Item 2-Schedule A 5 C&nonaburg Boro--Sewage prior to 2-6...66 OD Item 2-Sehedule A 6 Citizens Water-Water prior to 2-6-66 on I~2-SCbedulo A ?Palombi Br.-f:eaent t?ork prior to 2-6-66 on Item 2-Schedu1e ~ 8 Betty Edwarc1a-cleaning prior to 2-6-66 on Item 2-Sc:hG4ule A 9 DeVitia-Rubbieh removal prior to 2-6-66 on Item 2-SCheClule ~ 10 Wightman Manor-NUrsing Home &ervicea prior to 2-6-66 11 Washington COunty -Per.onal Property Tax 12 Inte~l Revenue Service -Gift ~x fOr 1965 13 Co,lumbia Gas 00.-Heat prior to 2-6-66 on Item l-Schedule A 14 canonsburg &oro-Sowage prior to 2-6-66 on Item l-Bebedule A 15 Cie1zens Water-Water prior to 2-6-66 on Item I-SChedule A 16 General Beating Co.-Furnace service to 2-6-66 92.26 411.08 211.18 15.70 6.51 2.20 295.00 3.06 8.00 242.79 182.34 21.00 105.08 9.80 3.89 1.00 TOTAL (also enter under the Recapitulation,Schedule 0)$1617.69 ItemNo.Mortgages and liens-Description Amount 1 $ TOTAL (also enter under the Recapitulation,Schedule 0)$None (If more space is needed,insert additional sheets of same size) Jobn A.JohnstonESTATEOF _ .50-10-77750-1 Schedule K-Page 25 1NSTRUCT10NSFOR SCHEDULE M BEQUESTS,ETC.,TO SURVIVING SPOUSE (MARITAL DEDUCTION) 1.GeneraL-In computing the taxable estate.f{)r Federal estate tax pnrposes in'the case of the estate of a citizen or resident of the United States,a deduction from the gross estate(the "marital deduction")is authorized f{)r.certain property interests passing from the decedent to his surviving spouse. The marital deduction is authorized by section 2056 of the Code. The marital deduction may be taken only with r$pect to prop- erty interests which are included in the decedent's gross estate (Schedules A to I,inclusive).The deduction is generally not available in case the gross estate consists exclusively of the decedent's interest in property held by him and his surviving spouse under community property laws.(See the instructions for Schedule 0.)The marital deduction is not authorized in the case of the estate of a nonresident not a citizen of the United States,except where such decedent died a resident of France.For the sake of brevity,these instructions make use of the masculine gender in references to the deceased spouse and the feminine gender in references to the survivor,but the de- ductions are also authorized in the reverse situation. 2.Property interests passing from the decedent to his surviving spouse.-The property interests included in the gross estate which are considered to have passed from the decedent to his surviving spouse imd as to which a marital deduction is author- ized should be listed on Schedule M.(As to certain interests which are to be excluded from Schedule M,see paragraph 7 hereof.)Property interests which passed from the decedent to his surviving spouse.include any interest taken by her (a)as decedent's legatee,devisee,heir or donee,(b)as decedent's sur- viving tenant by the entirety or joint tenant,(c)as appointee under decedent's exercise of a power or as taker in default upon his release or nonexercise of a power,or (d)as beneficiary of insurance upon the decedent's life,and also include (e)her dower (or curtesy)interest or statutory estate in lieu thereof (including her interest under community property laws to the extent that such interest was,immediately prior to the dece- dent's death,a mere expectancy).For further information as to property interests considered to have passed from the dece- dent to his surviving spouse,see paragraphs 3 to 6,inclusive., hereof. 3.Life.estate with power of appointment in surviving spouse.- A property interest whether or not in trust,is considered as passing from the decedent to his surviving spouse (and to no other person)if (a)she is entitled for life to all of the income from the entire interest;.(h)such income is payable annually . or atmore frequent intervals;(c)she has the power,exercisable in favor of herself or of her estate,to appointtheentire interest; (d)such power is exercisable by her alone and (whether exer- cisable by will or during life)is exercisable by her in all events; and (e)no part of the entire interest is subject to a power in any other person to appoint any part thereof to any person other than the surviving spouse._Where the foregoing 5 conditions are satisfied only with respect to a specific portion of the entireinterest,see the regulations issued pursuant to section 2056 (b) of the Code for the determination of the portion thereof which qualifies for the marital deduction. 4.Life insurance,endowment,or annuity payments,with power of appointment in surviving spouse.-A property interest consist- ing of the entire proceeds under a life insurance,endowment, or annuity contract is considered as having passed from the de- cedent to his surviving spouse,if (a)she is entitled to receive such proceeds in installments,or is entitled to interest thereon, with all amounts payable during the life of such spouse pay- able only to her;(b)such installment or interest payments are payable annually,or more frequently,commencing not later than thirteen months after the decedent's death;(c)she has the power,exercisable in favor of herself or of her estate,to appoint all amounts payable under such contract;(d)such power is exercisable by her alone and (whether exercisable by will or during life)is exercisable by her in all events;-and (e) no part of the amount payable under the contract is subject to a power in any other person to appoint any part thereof to any person other than the surviving spouse.Where the fore- going 5 conditions are satisfied only with respect to a specific portion of '8uch proceeds,see the regulations issued pursuanttosection2056(b)of the Code for the determinatiop of the poi:tion thereof which qualifies for the marital deduction. 5.Common -disaster -or -similarcause.-Where (a)a property interest was bequeathed,or otherwise disposed of,by the de- cedent to his surviving spouse subject to a provision that suchpropertyinterestwastopasstoanotherperson(1)if such spouse should fail to survive the decedent by 6 months (or by a shorter period),or (2)-if the decedent and such spouse should Page 28 die .as a result of a common disaster,and (b)the terms of the condition (that is,the survivorship of the surviving spouse or his failure to die in a common disaster)are fulfilled,then such property interest is considered to have.passedfrom the decedent solely to his surviving spouse.The fact that the exercise of a power of appointment over the interest is subject to one of the above conditions of .survivorship will not disqualify the interest for the deduction if the terms of the condition (that is,the survivorship of the surviving spouse or his failure to die in a common disaster)are fulfilled. 6.Effec:t of disclaimer.-Any property interest disclaimed by the surviving spouse is considered as passing to the person entitled to receive such interest as a result of the disclaimer. Where the surviving spouse becomes entitled to receive a prop- erty interest as a result of a disclaimer by any other person, such interest is considered as passing,not to such spouse,but to the person who made the disclaimer as though the disclaimer had not been made. 7.Property interests to be excluded from Schedule M.-Certain property interests which passed from the decedent to his sur- viving spouse are to be wholly or partially excluded from Sched- ule M,as indicated below: (a)In case interests in the same property passed from the decedent both to his surviving spouse and (for less than an adequate and full consideration in money or money'sworth)to some other person upon such conditions that the latter per- son may possess or enjoy any part of the property following the termination or failure of the interest therein which passed to the surviving spouse,then the interest which passed to such spouse is to be excluded from Schedule M. This rule applies even though the interest which passed from the decedent to a person other than his surviving spouse is not included in the gross estate,andirrespective of when such interest passed.It is also immaterial whether the interest of the surviving spouse and the interest of the other person passed from the decedent at the same time.Property inter-ests which are considered as having passed from the decedent to a person other than his surviving spouse include any prop- erty interest (other than the interest which,under the rules stated.in paragraphs 2 to 6,inclusive,are considered to have passed to the surviving spouse)which passed under dece-, dent's will or intestacy,or was transferred by him during life,or is held by or devolved upon any person as his joint tenant,as appointee under.his exercise of a power,as taker in default upon his release or nonexercise of a power,or as bene- ficiary of insurance upon his life.Examples of dis.positions of property by the decedent which are to be excluded from Schedule Mare:(1)A bequest of property to his spouse for life,with remainder to his daughter,and (2)a bequest of property to his mother for life,with remainder to his spouse, if surviving,and if not,to his daughter and her heirs.In each of these examples,the spouse's interest in the property may terminate or fail,and the daughter may thereafter pos- sess or enjoy the property. (b)In case the decedent directed his executor or trusteetopurchaseforhissurvivingspouseanannuity,a life estate or estate for years in certain property,or any other property interest which may terminate or fail,the property to be used in the acquisition of such interest is tobe excluded from Sched- ule M.The ownership of a bond,note,or other contractual obligation,the discharge of which would not have the effect of an annuity for life or for a term,is considered not to be a property interest which may terminateor fail. (c)Where any property interest passingfrom the decedent to his surviving spouse may be paid or otherwise satisfied out of any of a group of assets,the value of such property interest is,for the purpose of entry on Schedule M,to be reduced by the aggregate value of any such asset or assetswhich,if passing from the decedent to his surviving s.pouse, would be excluded under subparagraph (a)or (b)hereof. Examples of property interests which may be paid or other- wise satisfied out of any of a group of assets are a bequest of the residue ofthe decedent's estate,orof a share ofthe resi- -due,and a cash legacy payable {lutof the genffi'alestate. Example:A decedent bequeathed $100,000 to his wife.His general estate includes a term for years (valued at $10,000 in determining the value of his gross ~tate)in an office building,which interest was retained by the decedent under a deed of the building by gift to his son.Accordingly,the portion of the value of the specific bequest to be entered on Schedule M is $90,000.. . .(Continued .on page 30l .59~16-777So-1 ':--....~.-.- ;SCHEQVLE .L NET LOSSES DURING "ADMINISTRATION AND EXPENSES INCURRED IN ADMINISTERING PROPERTY NOT SUBJECT -TO CLAIMS ItemNo. ItemNo. ""' Net losses during administra!ion , I TOTAL (also enter under the Recapitulation,Schedule 0) Expenses incurred in administering property not subject to claims (Indicate whether estimated,agreed upon,or paid.) TOTAL (also enter under the Recapitulation,Sched~le 0) (If more space is needed,insert additional sheets of same size) Amount $ . $Bone Amount $ $NOne ESTATE OF ;[Q..b~_~~_~__~~@P-J~j;9..~~~__. c60-10-77750' Schedule L-Page 27 ees,only the number of each such class and the aggregate value of property received by them need be furnished.) ,,(c)The dates of birth of all persons,the duration of whose_ lives may affect the value of the residuary interest passing to the surviving spouse. (d)Any other informationthatmayappear material,such . as that relating to .any claim,not arising under the will,to any part of the estate.. Example of listing of property interests on Schedule M: Item No.Description Value 1 House and lot,256 South West Street,held by decedent and surviving spouse as joint ten- ants with right of surviv<>rship undeI'deed dated July 15,1937 (ScheduleE,item 1)$32,500 2 Proceeds of Gibraltar Life Insurance Company policy No.104729,payable in one sum to sur-viving spouse (Schedule D,item 3)20,000 3 Cash bequest under Paragraph Six of wilL 1QO,000 9.Adjustment for effect of death taxes.-The total of the values listed on Schedule M must be reduced by the amount of the Federal estate tax,and the amount of State or other death taxes,which are payable out of,or chargeable against the prop- erty interests involved.(As to the computation of such amounts in cases in which the Federal estate tax and the marital deduc- tion are interrelated see Supplemental Instructions for Form 706 obtainable from the district director.)Such amounts of taxes should be entered in the designated spaces (items (a) and (b»at the foot of Schedule M.Item (b)must be sup- ported by an identification and computation of the amount of State or other death taxes therein shown. 10.Supplemental documents.-If property interests passing by the decedent's will are listed on Schedule M,a certified copy of the order admitting the will to probate must be submitted with the return.If,at the time the return is filed,the court of probate jurisdiction has entered any decree interpreting the will or any provision thereof affecting any of the interests listed on Schedule M,or has entered any order of distribution, a copy thereof should also be submitted with the return.If the surviving spouse has filed with the court a renunciation of the decedent's will,or an election to take under the will,or a disclaimer of any property interest,a copy thereof is required. Additional evidence to support the deduction claimed may be requested by the district director. INSTRUCTIONS FOR SCHEDULE M-Continued (d)Property interests are to be excluded from Schedule M to the extent that a deduction therefor is taken under Schedules J to L,inclusive.Examples .of interests.to.be so excluded are fees or commissions deductible underSchedule J and payments made in satisfaction of a claim of the sur- viving spouse againstthe estate deductible under Schedule K. (e)Where a property interest passed to the surviving spouse subject to a mortgage or other encumbrance,or where an'obligation is imposed -upon the sul'viving 13pouse in con- nection with the passing of a property interest,only the net value of the interest .after reduction by the amount of the mortgage,or other encumbrance,or obligation,should be included in Schedule M.. 8.Listing of property interests on Schedule M.-Give a full description of each property interest listed on Schedule M,and number the items in sequence.Indicate the instrument (includ- ing clause or paragraph number if the instrument is so dra~) or provision of law under which each item passed to the SUl"VlV- ing spouse.Where possible,the schedule and item number of the property interest as it appears in Schedules A to I should be shown.Show the value of each item before taking into account fhe effect thereon of the Federal estate tax or any other death tax. (See paragraph 9 hereof and the supplemental instructions in a separate pamphlet (Supplemental Instructions for Form 706) obtainable from the district director).The valuation date or dates used in determining the value of the gross estate are also applicable with respect to the interests listed on Sche?ule M. If there is included in Schedule M a bequest of the reSIdue,or a portion of the residue,of the decedent's estate,there should be submitted a copy of the computation showing how the value of such item was determined.Such computation should include a statement showing: (a)The value of all property which is included in the de- cedent's gross estate (Schedules A to I)but d{)es not pass under the will,such as transfers,jointly owned property which passed to the survivor on decedent's death,and the in- surance payable to specific beneficiaries. (b)The values of a~l specific and ~eneral .legacies or de-vises with an approprIate reference In each Instance to theappli~able clause or paragraph of the decedent's will or codicil.(In any case where legacies are made to each member of a class,for example,$1,000 to each of decedent's employ- INSTRUCTIONS FOR SCHEDULE N CHARITABLE,PUBLIC,AND SIMILAR GIFTS AND BEQUESTS Deductions authorized for charitable,public,and similar gifts and bequests as set forth in the Estate Tax Regulations should be claimed under this schedule.If the transfer was made by will,a certified copy of the order admitting the will to probate, in addition to the cO.py of the will,should be submitted with the return.If the transfer was made by any other written instru- ment a copy thereof should be submitted with the ret.urn,and ~f the instrument is of record the copy should be certIfied and If .not of record the copy should be verified.If the transfer was made by will,an affidavit,or statement signed u~der the pe~al ties of perjury,of the executor must be submItted,showmg whether any action has been instituted to have interpreted or to contest the will or any provision thereof affecting the cha~table deduction claimed under this schedule and whether,accordmgto his information and belief,any such action is designed or con- templated.....If under the terms of the will or the law of the JurisdIctIon wherein the estate is administered or the law of the jurisdiction imposing the particular tax,~he F~deral esta~tax or a~y other estate,succession,legacy,or InherItance tax.IS payable.In whole or in part out of any bequest,legacy,or deVISe deductible here- under the sum deductible is the amount of such bequest,legacy, or de~iseso reduced.Ifclaim is made under this schedule for deductionof the value of the residue,or a portion of the residue,passing to charity under the decedent's will,there should be submitte?a copy of the computation showing how the value was de~rmmed.Such computation or supporting documents,should mclude: (1)A ~tatement showing the values of all ·s,pecificand general legacies or d~vises,indicat~ng whether th~y are for charitable or noncharItable uses,WIth an appropnate refer- enceineach instance to the applicable paragraph or secti?n of the decedent's will or codicil (in any case where legaCIes are made to each member of a class,for example,$1,000 to each of decedent's employees,only the number .of each suchclassandtheaggregatevalueofpropertyreceIvedbythem need be furnished). Page 30 (2)The dates of birth of all life tenants or annuitants, the duration of whose lives may affect the value of the inter- est passingtocharity under the decedents'will,, (3)A statement showing the value of all property which is included in the decedent's gross estate but does not pass under the will,such as transfers,jointly owned property which passed to the survivor on decedent's death,and insur- ance,payable to specific beneficiaries,and ' (4)Any other information that may appear material,such as that relating to any claim,not arising under the will,to any part of the estate,as of a spouse claiming dower,or curtesy,or similar rights,etc.. Deductions authorized for charitable,public,and similar gifts and bequests,which may be claimed under this schedule, include the interest which falls into any such bequest,legacy, devise,or transfer as a result of an irrevocable disclaimer of a bequest,legacy,devise,transfer,or power,if.the disclaimer is made prior to the date prescribed for the filIng of the estate tax return.The disclaimer must not only be made prior to the date prescribed for the filing of ~he e~tate tax ret~rn (incl.ud- ing such date as may be prescnbed In an extenSIOn of bme granted for the filing of such return),but must be irrevocable at the time the deduction is allowed.For further details and for events having the effect of a disclaimer,see the regulations under section 2055 of the Code. If the alternate valuation'is adopted,any bequest,legacy,de- vise,or transfer deductible under this schedule shall be valued for the purpose ,of the deduction as of the date of the decedent's death with adjustment for any difference in the value of the prope'rty 1 year after his death,or at the date C?f its sale,or exchange within such year,except that'llosuch adjustment may take into account any difference in value due to mere lapse of time or to the 'occurrence or nonoccurrence of a contingency. For limitations applicable to estates of nonresident aliens, see additional instructions on page 39. For further instructions,see Estate Tax Regulations. ·1 SCHEDULE M BEQUESTS,'ETC.,TO SURVIVING SPOUSE (MARITAL DEDUCTION) IHhe decedent diedte'state,the person or persons filing the return shouldanswer the following questions.Only question 4 should he answered in case the decedent'died intestate.'If'the answer to any question is "Yes,"full details should he submitted with the return. 1.Has any action been instituted to contest the will or any provision thereof affecting any property interest listed on .... this schedule or for construe,tion of the will or any such provision?' .',DYes Lrl'lo 20. 2b. 2d. Had the surviving spouse'the right to declare an election between (i)the provisions made in his or her favor by the will and (ii)dower, curtesy,or a statutory interest?' If answer to question 20 is "Yes,"has the surviving spouse renounced the will and elected 121:.Elected to take under to take dower,curtesy,or a statutory interest?,DYes 0 No the will. Does the surviving spouse contemplate renouncing the will and electing to take dower, curtesy,or a statutory interest? DYes [jCNo o YesO:No DYes 0 'Wo 3.According,to the information and belief of the person or persons filing the return,is any action described under question 1 designed or contemplated?o Yes~No 4.Ac~ording to'the infor~ahon and belief of such person or persons,has ~ny person other than the surviving spouse asserted (or,is any such'assertion contemplated)a right to any property interest listed on this schedule,other than as indicated under questions 1 or 3?0 Yes 0 No ItemNo. '1 -, Description of properly interests passing to surviving spouse .' $ Value. TOTAL '- ,' '.., , ' , , . . ...$..'__~ Less:(a)Federalestate t~x p~yable~ut of above-'listed property inte~ests : \$_ (b)Other death taxes payable outof above·listed property interests .----_...._. Total of items (a)and (b).~'';,:,.:,.'.'I__~---~ , Net value of 'above·listed property'interests (also enter under the Recapitulation,Schedule 0),..: . . ...$ (If more space is:needed,insert additional sheets of same size) HonG' ESTATE OF Jo.hn__A...JOhns.:tOn _ c50 ,I(j 777;-,()-:I ,,Schedule M-Page'29 -------INSTRUCTIONS-FOR~SCHEDULE 0 R,E~AI!IT~LATI~N , 1.Limitation of .deductions .under .Schedules J and K.-The total appearing on Schedule J should be entered as item 1 of that part of Schedule 0 headed "Deductions."The totals ap-. pearing on Schedule K should be entered as,items 2 and 3., Enter total of items 1,2,and 3 as item 4.If item 4 does not exceed the value (at the time of the decedent's death)of the property subject to claims,'enter such total as item 5.If item 4 does exceed,tpe value (at the time of the decedent's death)of the property subject to claims,enter as item 5 the value (at the time of the decedent's death)of the property subject to claims plus such excess as represents amounts paid before the date prescribed for filing the estate tax return.See section 2053 of the Code and the regulation thereunder. 2.Computation of marital .deduction.-The net value of the property interests listed on Schedule M should be carried for- ward to item 9 of that part of Schedule 0 headed "Deductions." The marital deduction,which should be entered at item 11,is limited to the smaller of (a)item 9 or (b)one-half of the "Ad- justed gross estate"(item'10).If the decedent and his surviv- ing spouse never held property under community property laws, the "Adjusted gross estate"is computed by subtracting item 8 from the total value of the gross estate. 3.Cases involving community property.-If the decedent and his surviving spouse ever held property as "community prop- erty"(as defined in paragraph 4),an additional sheet must be attached to Schedule 0 showing the computation of the "Ad- justed gross estate"(item 10).In such cases the "Adjusted gross estate"is determined by subtracting from the "Total Gross Estate"the sum of the following values and amounts: (a)The value of property included in the gross estate which was at the time of the death of the decedent held bythemas"community property." (b)The value of property (included in the gross estate)transferred by the decedent during his life,if at the time of such transfer the propei:ty was held by them as "community property." (c)The amount (included in the gross estate)receivable as insurance under policies upon the life of the decedent to the extent purchased with premiums or other consideration paid out of property held by them as "community pro,perty." (Where a policy was purchased partly with property held by them as "community property"and partly with other prop- erty,the amount receivable under such policy is considered to have been purchased with such "community property"in the .proportion that the payments made with such "community property"bear to the total amount paid.) (d)An amount which bears the same ratio to item 8 oftheSchedule0asthe"Total Gross Estate"(diminished by .the aggregate amounts .subtracted.under subparagraphs (a),, (b),and (c)hereof)bears to the undiminished "Total Gross Estate." Example:The value of a decedent's gross estate is $300,000 of which $200,000 represents his separate property and $100,000 represents his one-half interest in community property.The separate p'roperty was inherited from his father.The deduc- tions allowed under Schedules J to L (item 8 of Schedule 0) total $45,000.The"Adjusted gross estate"is computed as follows: Value of gross estate $300,000 . Reduction under subparagraph (a)$100,000 Reduction under subparagraph (d)(200,-000/300,000 of $45,000)30,000 130,000 Adjusted gross estate ,==$170,000 4.Definition of community property.-For the purpose of com- puting the "Adjusted gross estate,"the term "community prop- erty"is considered to include the following categories of property: (a)Property held by the decedent and surviving spouse as community property under the law of any State or pos- session of the United States,or any foreign country (other than such property in which the surviving spouse had merely an expectant interest). (b)Separate property acquired by the decedent as a result of a conversion (after December 31,1941)of property held by the decedent and surviving spouse as community property(as described in subparagraph (a)hereof)into their separate property.A conversion of community property includes a partition thereof between the decedent and his spouse or a transfer to themselves in joint tenancy,tenancy by the en- tirety,or other form,of coownership,irrespective of whether such partition or transfer was effected by a single transaction or a series of transactions.Where the value (at the time of the conversion)of the separate property so acquiredby the de-cedent exceeded the value (at such time)of the separate property so acquired by the spouse,then the part of the sepa- rate property so acquired by the decedent which is considered as held by the decedent and his surviving spouse as com- munity property is the same proportion thereof which the value (at the time of the conversion)of the separate property so acquired by the spouse is of the value (at such time)of the separate property so acquired by the decedent. (c)Property acquired by the decedent in exchange (by one exchange or a series of exchanges)for separate property resulting from a conversion of community property,as de- scribed in subparagraph (b)hereof. INSTRUCTIONS FOR SCHEDULE R CREDIT FOR TAX ON PRIOR TRANSFERS 1.General.-The term "transferee"as used in Schedule R and in these instructions for that schedule means the decedent for whose estate this return is filed.If the transferee receivedpropertyfromatransferorwhodiedwithin10yearsbefore, or 2 years after,the transferee,a credit is allowable on this return for all or a .part of the Fede'ral estate tax paid by the transferor's estate with respect to the transfer.There is no requirement that the property be identified in the estate of the transferee oi:that it be in existence on the date of the trans- feree's death.It is sufficient for the allowance of the credit that the transfer of the propertywas subjected to Federal estate tax in the estate of the transferor and that the specified period of time has not elapsed.Credit may be allowed with respect to property received as the result of the exercise or nonexerciseofapowerofappointmentwhenthepropertyisincludedinthe gross estate of the donee of the power.Where the transferee was the transferor's surviving spouse,no cred,it is allowed with respect to property received from the transferor to the extent that a marital deduction was allowed the transferor's estate in connection therewith.No credit on this return is authorized for Feaeral gift taxes paid in connection with the transfer of the property to the transferee. 2.Property.-The term "property"includes any interest (legal or equitable)of which the transferee received the bene- ficial ownership.The transferee is considered to be the beneficial owner of property over which he received a general power of appointment.It does not include interests to which the transferee received only a bare legal title,such as that of Page 32 a trustee.Neither does it include an interest in property over which the transferee received a power which is not a general power of appointment.In addition to property interests inwhichthetransfereereceivedthecompleteownership,examples of property interests wi.th respect to which the credit may be allowed include annuities,life estates,terms for years,remain- der interests (whether contingent or vested),and any other interest which is less than the complete ownership of the prop- erty,to the extent that the transferee became the beneficial owner of the interest.. 3.Maximum amount of the credit.-The maxiinum amount of the credit'is the smaller of: (a)the amount of the estate tax of the transferor's estate pertaining to the transfer,or . (b)the amount by which (A)an estate tax on the trans- feree's estate,determined without regard to the credit pro- vided for in this schedule exceeds (B)an estate tax on the transferee's estate determined by excluding from the gross estate the net value of the transfer.Where credit for a par- ticular foreign death tax may be taken under either the stat-, ute or a death duty convention and on this return the credit actually is taken under the convention,then no credit for that foreign death tax may be taken into consideration in comput- ing estate tax "(A)"or estate tax "(B)." The amount (a)is computed under part I of the computation of the credit.The amount (b)is computed under part II of the computa- tion of the credit.(-Continued on page 34) ,59-16-77750-1 SCHEDULE N CHARITABLE,PUBLIC,AND SIMILAR GIFTS AND BEQUESTS p..,•••~.._.,•I ~_.......... If the transfer was made by will- (a)Has any action been instituted to have interpreted or to contesUhe wilLor any provision'thereof affecting 'the" ,chC;;ritabl~d~duction~claimed in this sched~le?~..:.'."l'•,:.',• "., (b)According to the'information'and belief of the person or persons filing the return,:is any such acticin designed or contemplated?• ..... ItemNo. I . Name and address of beneficiary • I 'r I .. ',( ".!Character of institution 'j .J , DYes ONo DYes ONo Amount-q 1$J ) ," TOTAL (also enter under the Recapitulation,Schedule 0) (Ifmore space is needed.insert additional sheets of same size) ESTATE OF tJ'QhrLA...__,Jo..'mS:t:oA :_ c59-1G-77750-1 ,~' $'-N&~'- Schedule N-Page 31 2 years 100.2 years 4 years 80 4 years 6 years 60 . 6 year~8 years 40 8 years 10 years 20 10 years none 4.Percent allowable.-(a)Where transferee predeceased the transferor.If not more than 2 years elapsed between the dates of death,the credit allowed is 100 percent of the maxi- mum amount.If more than 2 years elapsed between the datesofdeath,no credit is allowed. (b)Where transferor predeceased the transferee.The per- cent of the maximum amount which is allowed as a credit depends on the number of years which elapsed between the dates of death.'It is determined in accordance with the following table: 5;Computation of the credit.-The instructions which follow are to be applied where credit is claimed for transfers received from one transferor only.See instructions under "Cases in- volving'transfers from·two or moi:e transferors"for the manner of computing the credit in cases involving transfers from more than one transferor..... .....PART I Item 1.Enter the value at which the property transferred was included in the transferor's gross estate reduced by the fol- lowing,to the extent that they affect·the net value thereof to the transferee,(i)the amount of any death taxes payable out of or chargeable against the transferred property,(ii)the amount of any mortgage or other encumbrance to which it was subject,(iii)the amount of any obligation assumed by the transferee in connection with the transfer,and (iv)if the transferee was the transferor's surviving spouse,by the amount of the marital deduction allowed the transferor's estate in computing its Federal estate tax. Example.Subject to the condition that B would pay $10,000 to C,A left to B,his surviving spouse,real property and bonds which were included in A's gross estate at values of $200,000 and $75,000,respectively.The real property was subject to a mortgage of $50,000.B was required to bear the burden of A's Federal estate tax to the extent of $4,800 and to pay State death taxes of $4,000.A's estate was allowed a marital deduc- tion of $150,000 for the property which passed to B.The amount entered in item 1.is $275,000-:-$218,~00.($1.0,909+ $50,000+$150,000+$4,800 +$4,000)=$56,200. Item 2.Enter the value of the transferor's taxable (net) estate,increased by the applicable exemption shown under Schedule P or Schedule Q,and decreased by the total amountofalldeathtaxespaidinconnectionwiththetransferofprop- erty included in the transferor's gross estate. Example.The transferor was a citizen of the United State.s. His taxable estate was $250,000.The Federal estate tax paId thereon was $61,7'80.State death taxes paid by the execut?r and the beneficiaries totaled $15,000.The amount entered In item 2 is $250,000+$60,000-$61,780-$15,000=$233,220. Item 3.Enter the amount of the Federal estate tax paid by the transferor's estate,increased by the amounts allowed the transferor's estate as (i)a credit for gift taxes,and (ii)a credit for tax on prior transfers received from a prior trans- feror who died during the 10-year period which immediately preceded the decedent's death. Item 4.Enter that proportion of item 3 which item 1 bears to item 2.PART II Item 5.Enter'the amount of the Federal estate tax,after deducting the credits,if any,allowable for State death taxes, gift taxes,and.foreign death taxes under the statute.The amount to be entered is the amount by which the gross estate tax (item 1,page 1)exceeds the sum of the following:The credit for State death taxes (item 2,page 1),the credit for Federal gift taxes (item 4,page 1),and so much of the credit for foreign death taxes (item 6,page 1)as is allowable under the statute. Item 6.Enter the value of the total gross estate less the amount entered at item 1. Item 7.The amount to be entered at item 7 is the aggregate of the exemption and the deductions entered in Schedule 0, with the following adjustments,if applicable:(1)Any marital deduction entered at line 11,Schedule 0,should here be reduced I by the amount,if any,by which such deduction exceeds one- Page 34-I.059-16-77750-1 Pe'rcent Not exceeding Allowable INSTRUCTIONS FOR SCHEDULE R-Continued from pase 32 half of a reduced adjusted gross estate computed by subtracting' the amount of item 1,Schedule R,from the amount of the ad- justed gross estate entered at line 10,Schedule 0;and (2)any charitable deduction entered at line 12,Schedule 0,should here be reduced by a proportionate part thereof.Such proportion.. ate part of the deduction taken on line 12 of Schedule °is that portion thereof which an amount A (the amount entered at item 1 of Schedule R)bears to B (the value of the total gross estate less the amount shown on line 8 of Schedule 0).' Example.The following entries appear on Schedule 0:Total gross estate-$330,000;line 8-$30,000;line 9-$160,000;line 10-$300,000;line 11-$150,000;and line 12-$10,000.The amount appearing in item 1 of Schedule R is $15,000.Under' these circumstances if the property entered under item 1 of Schedule R were not included in the gross estate,the gross estate would be $315,000,the adjusted gross estate would be $285,000,and the'marital deduction'woUld be $142,500.The reduction to be made on account of the charitable deduction .$15,000 $10000)IS $500 ($330,000':'-$30,000X ;. Item 8.Entei'item 6 minus item 7. Item 9.Enter.the amount of the Federiil estate tax on the reduced taxable estate (item 8),after deducting the credits,if any,which would be allowable for State death taxes,gift taxes, and foreign death taxes under the statute,if the gross estate were the amount of item 6 and the deductions were those used in determining the amount of item 7. Item 10.Enter item 5 mfnus item 9. PART III Item 11.Enter.item 4 or item 10,wh~chever is the smaller. Item 12.Enter the percent of the maximum amount which is allowable.See "Percent allowable"on this page. Item 13.Enter the amount obtained from multiplying 'item 11 by item 12. 6.Cases involving transfers from two or more transferors.-, Where transfers were received from more than one transferoi: the credit is computed in a manner slightly different from that outlined above.The name,date of death,and address of one transferor are entered on the Schedule R provided in the return • and the computation with respect to transfers from that trani;l- feror is completed through part I.The same operation is completed on a separate copy ·of Schedule R for each of the other transferors.The computation in part II is performed only once,regardless Of the number of transferors.The en- tries·for part·II .should be made on the cO,py of Schedule R provided in the return.The amount entered in item 6 is the total gross estate less the total of the amounts entei:ed in items 1 of the computations made for all transferors.The , amount entered in item 10 is apportioned to each transferor in the proportion that the amount entered in item 1 of the com- putation made in connection with his transfers bears to the total of the amounts entered in item 1 of all of the computa- tions.Part III is computed separately for each transferor. ·Enter·in item 11 the'amount shown in item 4 or the amount from item 10 which is apportioned to that transferor,which- ever is the smaller,and then complete the computation'.The total amount of the credit allowable is the total of the amounts entered in items 13 of all the computations.The additional copies of Schedule R on which computations are made should be attached to the Schedule R provided in the return. Example.C received property from A having a net value of. $100,000 and property from B having a net value of $50,000. A's name;date of,death,and address are entered on the Sched- ule R provided in the }'eturn and the computation through part I is completed with respect to the transfer from A.On an addi-tional copy of Schedule R (detached from an unused copy of the return form)similar identifying data for B is entered,and the computation completed through part I.'The computation of part II is made only on the Schedule R used for the computa- tion of the credit on A's transfers.Except for item 6,it is made as though only one transferor were involved.The amount entered in item 6 is the decedent's total gross estate ~ minus $150,000 ($100,000 from A plus,$50,000 from B).If, for instance,the amount entered at item 10 is $27,000,that amount would be apportioned to A's.transfers as follows: $100 ~~~0,0~500 000 x $27,000=$18,000.Similarly $9,000 is ap-, + ,. .portioned to B's trans.fers..The amount entered In it~m 11 of the Schedule R used for A's transfer is the amount shown initem4orthe$18,000,whichever is the smaller.Part III of the computation of the credit for tax paid by B's estate is completed in a similar manner.. Period Of tiine Exceeding SCHEDULE 0 RECAPITULATION "~--;---:----:------:-",-,----..,-------,.------------;--,---.,..--..,-:;--.----:---- Sched-ule Gross estate ,cAlteinate value Value at date of death ...l I jRealestate....•........',..,'.'. B, 59000~OO 59000;00$----------------"------$------------------------ 11991.04 95111.88Stocksandbonds:....•...',' '.','_ c Mortgages,notes,and cash..............................•.........................517.91 517.91 D E F c 4314.19 ~4314.19Insurance' .._••••_.••__._ .'Bone-·None -JOIntly owned proRerty.:'. .••c _ ."33123.26 33123.26OthermIscellaneousproperty.-----.-----.----.-.---__ Transfers during decedent's life ~~c ~~~._ I Annuities c ••••••••••••••••••••••••••••••••••••••••••••••••••"•••••••••••,•••••••• H Powers of appointment.. None None' Bone TOTAL GROSS ESTATE :$174946.40 $192073.24 Sched--ule J Deductions 1.Funeral expenses and expenses incurred in administering property subject to claims .. Amount 10496.81$----c _ K K 2.Debts of decedent ~~_!1.!.~_~_ 3.Mortgages and liens 'I B_O_fte _ 4.Total of items 1 through 3 $12104.50 5.Allowable amount of deductions from item 4 (see note')' :$~lQ~~~_Q_ L 6.Net losses during administration "~.--- L 7.Expenses incurred in administering property not subject to claims , " ..._ 8.Total of items 5 through 7 ,..1 , t, M 9.Bequests,etc.,to surviving spouse.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...$:. 10.Adjusted gross estate (se,e note")..''~~._.. _ 11.Net amount deductible for bequests,et9.,to surviving spouse (item '9 or one-half of item 10,whichever is smaller)'. N 12.Charitable,public,and similar gifts and bequestS ';1 WABLE DE UCTION I f '12104.50TOTALALLO,D S.except exemption (tota s 0 lines 8.11.and 12). . . . . . . . . . . . . . . . . . . . ...$ 'Note.-See paragraph 1 of·the instructions. "Note.-Enter at item 10 the excess of "TOTAL GROSS ESTATE"over item 8,if the decedent and his surviving spouse at no time held property as community property.If property was ever held as community property,compute the "Adjusted.gross.estate"(item 10)in accord- ,ance with the instructions and example on page 32.and attach an additional sheet showing such computation. ESTATE OF _~jQbn__.A_.~obj§_W,tL ...~L_._._.__ c59-16-77750-~ Schedule o-Page 33 INSTRUCTIONS FOR SCHEDULE S CREDIT -FOR FOREIGN DEATH TAXES ) c59-16-77750-1 1.General.-"Credit for foreign:death 'ta~es"is allowable taken on Sched~les M and N which are 'attributable to such only in case the decedent was a citizen'or resident of the United pro,perty. States.However,see section 2053 (d)of the Code and the reg-Item 4.Subtract the amount shown,at line 4 in "Computation' ulations thereunder for'exceptions and limitations if an execu-of Tax"on page 1 from the amount shown at line 3 on that tor has elected,in certain cases,to deduct such taxes from.the page'and'enter the result·atitem4. value of the gross estate.In the case of a resident,not a citizen,the credit is allowable only if the country of which the decedent .Item 5..·Enter that portion of item 4,which item 3 bears to was.a national allows a similar·credit to decedents who were'item 2..citizen~of the United States resident in that country.Credit is Item 6.Enter item 101'item 5,whichever is smaller. authorIzed (a)by statute or (b)by treaty.'Where credit is .4.Credit under treaties.-(aJ In generaI.-Where the provi- authorized by treaty there is allowable either the credit com-SlOns of a treaty apply to the estate of a citizen or resident of puted l;mder the Statute or the treaty,whichever is more bene-the United States,a credit is authorized for payment made of ficial to the estate.Under the Statute credit is authorized for -t~e foreign death tax or taxes specified in the treaty.The all death taxes (national and local)imposed in the foreign CIrcumstances under which the provisions of a treaty apply country.Whether local taxes are the basis for a credit under to an estate are'set forth in General Instruction 0 on page 6. a treaty depends upon the provisions of the particular treaty.The foreign death taxes specified in the treaties are as follows: If credit for death taxes paid in more than one foreign country Country Death Taxisallowable,a separate computation of the credit must be made Australia .____________________Commonwealth estate dutywithrespecttoeachforeigncountry.The copies of Schedule S Canada "______________Canadian estate tax on which the additional compatations are made should be in-Finland_________________________Finnish inheritance tax,the com- serted immediately following the copy of Schedule S provided munal tax on inheritances,be- in the return.The total amount of the credit allowable in quests and devises,and the "POOl'Srespectofanyproperty,whether subjected to tax by one or more percentage"than'one foreign country,is limited to the amount of the estate France .French inheritance tax - tax attributable to such property.The anticipated amount of Greece Greek inheritance tax ·the·credit may be computed on the return,but the creditcannot Ireland Irish estate duty finally be allowed until the foreign tax has been paid and a cer-Italy Italian estate and inheritance taxes tificate on Form 706CE evidencing payment thereof is fur-Japan Japanese inheritance tax nished.Section 2014 (g)of the Code provides that for pur-Norway Norwegian tax on inheritances in- poses of credits for foreign death taxes,each possession of the ,cluding death gifts 'United States shall be deemed a foreign country.SwItzerland Estate and inheritance taxes im- 2.Credit under the Statute.-Inthe case of a citizen orresident posed by the cantons and their of the United States a credit is authorized for any estate,in-political subdivisions heritance,legacy,or succession taxes paid to a foreign country Union of South Africa Union estate dutyoritspossessionsorpoliticalsubdivisionsinrespectofpropertyUnitedKingdomGreatBritainand Northern Irelarid 'estate dutiessituatedinthatcountryandincludedinthegrossestate(Sched-ulesA to I,inclusive,of this.return).Where the decedent was Credit claimed under a treaty is in general computed on a resident of the United States but not a citizen thereof,the Schedule S in the same manner as credit is computed under Statute allows no credit unless the country of which he was a the Statute with the following principal exceptions:(1)The 'citizen or subject,inimposing such taxes,allows a similar credit situs rules contained in the treaty apply in determining whether in the case of a United States citizen resident in such country.property was situated in the foreign country;(2)credit may be For the,pUl'Pose of the credit allowed by the Statute,the·ques-allowed only for payment of.the death tax or taxes specified in tion of whether particular ,property is situated in the foreign.the treaty and cannot be allowed for any other death taxes paid country imposing the tax is determined in accordance with the to that foreign country or its possessions or political subdivi- same principles that would be applied in determining whether sions;(3)where specifically provided,credit is proportionately similar property of a nonresident not a citizen of the United shared for the tax applicable to property situated outside both States is situated within the United States for the purpose of countries,or.was deemed in some instances situated within the Federal estate tax.See "Additional Instructions for Estates both countries;and (4)the amount entered at item 4 of Sched- of Nonresidents not Citizens of the United States"on page 39.ule S is the amount shown at line 3 in "Computation of Tax" Applying such principles,a bond is deemed situated in the on page 1 less the total of the amounts shown at lines 4 and foreign country imposing the tax only if the certificate therefor 5 on that page.Credit for payment of the foreign death is physically located in that country.A share of corporate taxes provided for in the treaties with Australia,Canada,the stock is regarded as situated in the foreign country imposing UnitedKingdom,Ireland,and the Union of South Africa must be the tax only if the issuing corporation is incorporated in that claimed within'6yeiu:s from the date of the decedent's death country.An account with a bank in a foreign country of a (or within such further period as is provided in the case of citizen or resident of the United States who is not engaged in postponement of tax attributable to a reversionary interest). business iIi that foreign country is not considered to be situated Credit for payment of the foreign death taxes provided for ininthatcountry.the treaties with Norway and Finland must be claimed within6yearsfromthedateofthedecedent's death.Credit for,pay- 3.Computation of credit under'the Statute.-Item 1.Enter ment of the foreign death taxes provided for in the treaties ,the ,amount of the estate,inheritance,legacy,and succession with France and Switzerland must be claimed within 5 years taxes paid to the foreign country and its possessions or political ,from the date of the decedent's death.Credit for payment of subdivisions,attributable to property which (a)is situated in •the foreign death-tax 'provided for in the treaty with Greece that country,(b)is subjected to such taxes,and (c)is included must be claimed within 5 years from date return is required. in the gross estate.The amount entered at item 1 should not Credit for payment of the foreign death tax in the treaty with include any tax paid to the foreign .country with respect to'.Japan must be,claimed within 5 years from due date of tax. property not situated in that country and should not include For examples of computation of credits under the treaties,see any tax paid to the foreign country with respect to property applicable regulations. not included in the gross estate.If only a part of the property (bJ Computation of credit in cases where property is situated subjected to such foreign taxes is both situated in the foreign outside both countries or deemed situated within both countries.-Y country and included in the gross estate,it will be necessary In such cases consult the appropriate treaty for details. to'determine the portion of the taxes which is attributable to 5.Example of computation of credit under the Statute.-The such part of the property.In such a case,an additional sheet decedent was a citizen of,'and domiciled in,the United States • showing the computation of the amount entered at item 1 must at the time of his death.The gross estate consisted of stocks beattached.---··of United States corporations,$90,000;bonds of corporations Item 2.Enter the value of the gross estate less the total of organized under the laws of M country,$45,000;and stocks of the deductions shown on lines 11 and.~2·of.Schedule~O...Corp'or.atians orga,nized under the laws of M country,$75,000.Owned by the decedent but not included in the gross estateItem3.Enter the value of the property situated in the for-under General Instruction J was real property in M country eign country which is subjected to the foreign taxes and in-valued at $60,000.On the date of death,all of the stock and c~uded in~e gross estate,less those portions of the deductions .(Continu~d o~page 37) Page 36 'SCHEDULE P TAXABLE ESTATE:-.-RESIDENT OR CITIZEN , Instructions.-This Schedule Should be Used only for the Estate of a Resident or Citizen of the United States '1.Total gross estate . 2.Total allowable deductions \Lg!Q~~~~t ,3.Exemption ;,60,000.00 4.Total deductions plus exemption ,' . s.Taxable estate (item 1 minus item 4).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...$ SCHEDULE Q TAXABLE ESTATE-NONRESIDENT NOT A CITIZEN OF THE UNITED STATES. 12104.50 102841.90 $----------------------- $------ $----- $------_:--------------- Instructions.-This schedule should be used only for the estate of a nonresident not a citizen of the United States.See instructions under "Deduction of administration expenses,claims,etc."on page 39.See 'also instructions under "Exemption"on page 39 for amount of exemption and names of countries,the estates of whose residents qualify for the "prorated exemption."If dece'dent was domiciled in Canada and died after December 31,1958,see "Convention with Canada"on page 39 regarding special exemption and tax computation.Use Form 706g (Schedule 0 (2»instead of Schedule Q in case of decedent who at the time of his death was domiciled in France or Greece and was not a citizen of the United States.(If the "proratedexemption"is claimed under the Japanese convention,the numerator of the fraction set forth in item 7 is the value of the property situated in the United States and subjected to tax by both Japan and the United States.)The value to be entered for item 2 includes real property situated outside of the United States if required to be included in the gross estate'by General Instruction J,page 4. 1.Value of gross estate in the United States (Schedules A,B,C,D,E,F,G,H,and 1). 2.Value of gross estate outside the UnitedStates (must be supported by proof described in instructions under "Deduction of administration expenses,claims,etc.,"on page 39),1 _ 3.Value of total gross estate wherever situated (item 1 plus item 2),. 4.Gross deductions under Schedules J,K,and L ,. 5.Net deductions under Schedules J,K,and L (that proportion of item 4 that item 1 bears to item 3). 6.Charitable,public,and similar gifts and bequests (Schedule N).............................•....••......... 7.Exemption of $2,000 (in estates qualifying for "prorated exemption,"use $2,000 or item 1 X $60,000,whichever is the greater)1 _item 3 . 8.Total deductions plus exemption (item 5 plus items 6 and 7).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...$_ 9.Taxable estate (item 1 minus item 8).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...$ SCHEDULE R CREDIT FOR TAX ON PRIOR TRANSFERS Name of transferor Transferor's residence at time of death I Date of transferor's death COMPUTATION OF THE CREDIT PART I-'rRANSFEROR'S TAX ON PRIOR TRANSFERS 1.Net value of transfers...................................................................................$_ Z.Value of transferor's estate (adjusted in accordance with instructions for item 2).. .... .... . . ...$,...,.. 3.Tax on transferor's estate (adjusted in accordance with instructions for item 3).. . .$_ 4.Transferor's tax on prior transfers (proportion of item 3 which item 1 bears to item 2),.$_ PART II-TRANSFEREE'S TAX ON PRIOR TRANSFERS 5.Transferee's tax computed without regard to credit allowed under this schedule..............................$_ 6.Transferee's reduced gross estate.........................................................................$_ 7.Transferee's deductions (adjusted in accordance with instructions for item 7)...•.•....••••••••••••••••••.•.•..1 _ 8.Transferee's reduced taxable estate (item 6 minus item 7).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . •. . . . . . • . . . . . . . . ...$_ 9.Tax on reduced taxable estate 1 _ 10.Transferee's tax on prior transfers (item 5 minus item 9).. . . . . . . . . . . . . . . . . . . . . . . .... ...$'--_ PAR~III-CREDIT ALLOWABLE 11.Maximum amount before application ,of percentage requirement (item 4 or item 10,whichever is smaller)" $_ 12.Percent allowable is . 13.Credit allowable (item 12 X item 11)'.'. . . . . . . . . ............ . . . . . . . ...$ .,-ESTATE OF ..Johu_A..Johnaton..,_ 059-10-77750-1 Schedule P,Q,and R-Page 35 .,... CREDJT FOR 'STAre DEATH TAXES AND FEDERAL GIFT TAXES STATE DEATH TAXES Credit is allowed for estate,inheritance,legacy,orsuccession ; tll.?'es paid as the result of the decedent's death to any State,or l the District of Columbia.However,seeosection 2053 (d)of the Code and the .regulations thereunder.for exceptions and limita- tions if an executor has elected,in certain cases,to deduct such .taxes from the value of the gross estate.'The credit cannot exceed an amount wbich is computed by means of Table B on page 40,based on the value of the taxable estate shown in 'Scbedule P or SCheduieQ,as the case maybe.An anticipated amount of credit may be claimed and the Federal estate tax computed on the retUTIl in accordance therewith 'before the State death taxes have been paid,but the credit cannot be finally allowed uIilessthe State -death taxes are actually paid and credit therefo1'·elaimedwithin 4 years after the return is 'filed (or within such further period provided by the Statute in a case where a petition is filed with the Tax Courtof the United States,Gl"in the ease·ofan,extension or postponement of time) and evidence that the tax bas been paid is submitted. The following evidence should be submitted to tbe district director: (1)Certificate of the proper officer of the taDng State, or the District of 'Columbia,showing:(a)The total amount of taxim1>osed(beforeadding interest and'penalties and . 'before allowing discount);(b)the amount of discount'al-! lowed;(e)the amount of penalties and interest imposed or charged;-(d)-the ·total amount actually paid in cash;and fe)the date of payment. (2)Such additionalpl'OOf as the -distriet ·director may specifically request. If practicable the evidence outlined in (1),above,should.be . filed with the return,but if that is not convenient or possible, it should be submitted as soon thereafter as 'practicable. Example.The decedent,a resident of the United States, .died .on January 31,le955.The total gross estate is .$400,000. The value of the taxable estate shown under Schedule P is '$265,000.Itis assumed that the maximum amount of the credi~ for State death .taxes is allowable and that no other credits will be claimed.The amount of the gross estate tax shown in ~olumn (3)of.Table A (on'page 40)on a taxable estate equal- mg $250,000 .IS $6'5,700.Smce $265,000 exceeds $250,000 and' falls below $500,000.,the amount·of the gross estate tax on the excess of $15,000 is computed at 32 percent~the rate shown in column (4)of 'Table A.The $4,800 computed on such excess, added to $65;700 equals $70,500,the gross estate tax.Using" Table B (on page 40)it is determined that the maximum' amount of the credit for State death taxes allowable in the case of a taxable estate ,of $265,000 is $4,400.The gross estate , tax,$70,500,less credit for State death taxes,$4,400,equals • $66,100,which is the "Gross estate tax less credit for State death taxes"and is the amount which should be entered at ·item 3.As no credit either for Federal gift taxes,for tax on plioI'transfers,or for foreign death taxes is involved,that amount is the net·estate tax payable.The computation of the tax in this example is .set up as follows: 1.Gross estate tax $70,500 2.Credit for State death taxes_________________________4,400 3.Gross estate tax less credit for State deathtaxes $66,100 .FEDnAt.GIFT TAXES Credit is allowed for "Federal gift taxes"imposed by chapter ,12 of the Code and the corresponding provisions of prior laws, on the transfer from the decedent of property which is included in the gross estate.The credit cannot exceed that proportion ·of the gross estate tax less State death taxes that the value of the included gift bears to the entire gross estate,reduced by the total deductions allowed for charitable,public and similar gifts and bequests and as a.marital deduction,For further infor- mation see the regulations issued pursuant to section 2012 of .the Code. INSTRUCTIONS FOR COMPUTATION OF TAX _-_1 8.Net estate tax payable_________________________________$46,325 :For convenience the computation .of the tax on page 1 is Example.The facts are the same as in example above illus-• divided into 'two parts.Where no credit is claimed by the trating the computation of State death taxes except tbat J estate either for Federal gift taxes,for tax on prior trans-credits are claimed for Federal gift taxes,for tax on prior fers,or for foreign death taxes,only Part I (consisting of transfers,and for foreign death taxes.It is assumed for the items 1 through 3)should be completed.Where a credit purpose of this example that the decedent transfelTed on is claimed eitber for Federal gift taxes,for tax on plioI''December 1,1~54,in contemplation of death,certain real prop- transfers,or for foreign death taxes,Part II (consisting of erty to his daughter as a gift.The value of this real property items '4 through 8)should be completed in addition to .Part I..as of the date of the .gift,and as of the time of death,was 'PART I $143,000,As a result of this gift,a gift taxof $17,775 was paidonanetgiftof$110,000 ($3,000 excluded and the specific Item 1.Exce1>t as provided in "Convention with Canada"on exemption of $30,000 deducted under the gift tax provisions ' page 39,"gross estate tax"is computed by.means of Table A of the 1nternal 'Revenue Code of 1939).As the value of the on page 40,on the value of the taxable estate shown under transferred real property is included in the decedent's gross Schedule P or Schedule Q,as the case may be.estate,a credit for gift tax is allowed against item 3.The gift Item 2.See above instructions and example relative to credit i;axeredit is Hmitedto the -aIDountof the gift tax,~17,775,and I for State death taxes.also is limited to the proportion of $66,100,the amount of Item 3."Gross'estate tax less credit for State death taxes"is item .3,tnatthe value of the included gift"$140,000,bears totht,.afte d d .th te d t the entire gross estate,$400,000.(It will be noted that theeamounremammg.I'e uctmg .e amount en re .a .'.am...ount 'of the l'nclud·ed .gif't .IS·'.$1'AL;I,OOO.Whl'ch I'S $14~,000 lessitem2fromtheamountenteredatitem1.'This amount also '"V._represents the net estate tax payable unless credit is claimed $3,000,the amount excluded in determining the included giftfor either for Federal gift taxes,for tax on prior transfers or for .purposes of the gift tax.)Since $140,000 dividerl by ~400,000foreigndeathtaxes.~equals 0,35,the amount of this proportion is $23,135 ($66,100PARTII.multiplied hy 0.35).:Since the gift tax is less than $23,135, the former amount,$17,775,should be entered at item 4.The Item 4.See above instructions relative to credit for Federal credit computed on Schedule R for tax on prior transfers gift taxes..amounts to $1,100 which should be entered at item 5.'The Item 5."Credit for tax on prior transfers'!is the amount credit computed on Schedule S for a foreign death tax amounts computed on Schedule R.to $900 which :shouldbe 'entered atitem 6.The .total -of items item 6."'Credit for foreign death taxes"is the amount com-.4,5,.and £,01'.$.19,775,.should be ,entered at .item 7.The net puted on Schedule S,If credit is claimed for death taxes paid estate tax payable,$46,325 (item 3 less item 7),is shown at to more than one foreign country,the credit for the payment to item 8.The computation in Part II is set up as follows: each country should be computed separately and the'tota:l'there-'of entered at item 6~subject to the limitation that the amount 4.Credit for Federal gift taxes $17,775 of the credit allowable 'in respect of property subject to death 5.Credit for tax on prior transfers_________1;100 taxes by two or more foreign countries cannot exceed the '6.Credit for foreign death ·taxes__~~________900 amount of the estate tax attributable to such property. The following.example illustrate.s the computation in .Part 7.Total of credits under Bart II $19,775 • II where credits for Federal gift taxes,for tax on prior trans- fers,and for foreign death taxes are involved....~g-16-77750-1 Page 38 ) ,. INSTRUCT·IONS FOR SCHEDULE S.....Continued ) bond certificates were in a bank vault in the United States. bebts and administration expenses total $20,000.The M coun- 'try real property and $10,000 ofthe stocks of M country corpora- tions passed to the decedent's surviving spouse and the latter )tem qualified for and was allowed as a marital deduction.The amount of the gross Federal estate tax less credit for State in- heritance taxes is $25,820.The amount of the.M country in- heritance tax imposed on the widow's inheritance of $70,000 is ,$21,000.The valueof the daughter'ifinlieritance is $65,000;con- .sisting entirely of stocks of M country corporations.The amount of theM country inheritance tax imposed on the daugh- -ter's inheritance is $19,500..M country did not impose inherit- •ance tax on the bonds issued by the M country corporations. Schedule S is filled out as follows:' 1.Amount of estate,.inheritance,leg'acy and succession taxes imposed in the above country attributable to property situated in that country,and subjected to such taxes,and included in the gross estate (asdefinedbystatute)_:____________________________$22,500.00 2.Value of the gross estate (adjusted)$200;000.00 3.Value of property situated in that country, and subjected to death taxes imposed in that country,and included in the grossestate(adjusted)$65,000.00 4.Federal estate tax before allowance of creditforfore,ign death taxes________________________$25,820.00 5.Amount of Federal estate tax attributableto propertyspecified at item 3 (proportionof item.4 that·item 3 bears to item 2)______$8,391.50 6.Credit for death taxes imposed'in the above country (item 1 oritem 5,whichever is thesmaller)$8,391.50 The additional sheet showing the computation of the amount of inhe'ritance taxes entered at item 1 sets forth 'as -follows: Computation of portion of M country inheritance tax im- posed upon the widow's inheritance attributable to property subjected to Federal estate tax'(instructions -for ·item 1 of Schedule S)- 1.Amount of M country inheritance tax im-posed on the inheritance ,~::$21,000.00 2.Value of property situated in M country,'-sub- jected to M country inheritance tax and in-cluded in the gi'oss estate :$10,000.00 3.Total value of property subjected to Mcountryinheritancetax~$70,000.00 4.Amount of M country inheritance tax atti'ib- utllble to.item 2 (proportion of item 1 thatitem2bearstoitem3)$3,000.00 Total M country inheritance tax attributable to property situated in that country and included in the gross estate--.1.For widow's inheritance ";__$3,000.00 2.For daughter's inheritance '$19,500.00 3.TotaL .______________________$22,500.00 ) SCHEDULE S CREDIT FOR FOREIGN DEATH TAXES List all of the foreign countries to which death taxes have been paid,credit for the payment of which is claimed on this return _ '.If credit is claimed for death taxes paid to more than one foreign country,compute the credit for taxes paid to one country on this sheet and use a separate copy of Schedule S for each of the other countries.The copies of SchedUle S on which the additional computations are madeshouldbeattachedhereto.-.... The credit computed on this sheet is for ~...:~~_ (Name ofdeath taxor taxes) _______________________________________________________________________~_____imposed in ,~. _ .(Name ofcountry) Credit is computed under the :~._ .(Insert "treaty"'or "statute"). COMPUTATION OF THE CREDIT (All amounts and values shown hereunder must be entered in United States money) I.Amount of estate,inheritance,legacy and succession taxes imposed in the above country attributable to propertysituatedinthatcountry,and subjected to such taxes,and included in the gross estate (as defined by statute). ...$:_ Z.Value of the gross estate (adjusted,if necessary,in accordance with insiructions for item 2). . . . . . . . . . . . . . .... ...$~:_ 3.Value of property situated in that country,and subjected to death taxes imposed in that country,and included inthegrossestate(adjusted,if necessary,in accordance with instructions for item 3). . . . . . . . . . . . . . . . . . . . . . . . ...$_ 4~Federal estate tax before allowance of credit for foreign death taxes.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...$_., 5.Amount of Federal estate tax attributable to property specified at item 3 (proportion of item 4 that item.3 bearstoitem2)_.__. _ _. _. . _: . . . . . . . . . . . . . . . . . ...$_ 6.Credit for death taxes imposed in the above country (item 1 or item 5,whichever is the smaller)_. . . . . . . . . . . . ...$_ 1\ ESTATE OF .._ eS9-tG-77750-1 Schedule S-Page 37 ,.. .DECLARATION _J Under penalty of perjury,I declarethat this return,including any accompanying statements;has been examined by me,and'" is,to the best of my knowledge and belfef,a true,correCt,and comp'lete r~turn,made in'good faith pursu~mfto:the Internal·' Revenue Code and the regulations thereunder....-.,-...- .- . .'..1 (Date)(Signature of executor,~lnistrator;e~c.) •.I _ ••• DECLARATION OF ATTORNEY OR AGENT PREPARING RETURN .~'.\ Under penalties of perjury,I declare that I prepared this return for the person or persons whose signature(s)appear(s)above and that this return,including any accompanyingschedules and statements,is,to,the best of my knowledge and belief,a true,.correct and complete return based on all the information relating to the matters required to bereporteCl in this return of which I 'have -any knowledge. (Date),(Signature of preparer (individual or firm)other thaD-,executor,administrator.etc.) 'TABLE A Law &.f'inance Sui1d1ng: ____cano.nsburjjJ4-__PCnn8~-lvaPu-----.-.._.(Address)'. TABLE B , COM;E'UTATION OF GRoss'-EsTATE TAX Taxable Taxable Rate of estate'Tax on tax on equal to or -estate less amount in excess over than-column (1)amount inmorethan-column (1) (1)(2)(3)(4) -.(Percent) °$5,000 °3 $5,000 10,000 $150 7 10,000 .20,000 500 11 20,000 ·30,.000 1,600 1430,000 ·40,000 3,000 IS 40,000 .50,000 -.4,800 22 50,000 60,:000 -7,000 25 60,000 ·100,000 ..9,500 28 100,000 250,000 20,700 3.0 250,000 500,000 65,700 32 500,000 .•'.750,000 145,700 35750,000 1,000,000'233,200 371,000,000 1,250,000 .325,700 39 1,250,000 1,500,,000 423,200 .42 1,500,000 2,000,000 528,200 45 2,000,000 2,500,000 753,200 49 2,500,000 3,000,000 998,200 53 3,000,000 3,500,000 1,263,200 56 3,500,000_4,000,000 1,.543,200 59 4,000,000 5,000,000 1,838,200 63 5,000,000 6,000,000 2,468,200 67 6,000,000 ·7,000.000 3,138,200 70 7,000,000 8,000,0.00 3,838,200 73 8,000,000 10,000,000 4,56S,200 7610,000,000 ----------------6,088,200 77 COMPUTATION OF MAXIMUM iliEDIT FOR STATE,DEATH TAXES ---. ,Rate ofTaxableTaxableCreditoncreditonestateestatelessamountinexcess,overequaltoorthan-column (1)amount inmorethan-column (1) (1)(2)(3)(4), (Percent) °$40,000 °None $40,000 90,000 °0.8 90,000 140,000 $400 1.6 140,000 240,000 1,200 2.4 240,000 440,000 3,600 3.2 440,OOG 640,000 W,OOO 4.0 64G,000 MO,OOG 18,090 4.8 840,000 1,040,000 27,600 5.61,040,000 1,540,000 38,800 6.4 1,540,000 2,040,000 70,800 7.2 2,040,000 .Z,540,000 106;800 8.°2,540,000 3,040,000 146,800 8.8 3,040j 000 3,540,000'190,800 9.6 3,54G,000 4,040,000 .238,80a 10.4 4.040,000 5,040,000 .290,800 11.2 5,040,.000 6,040,00a 402,800 12.°6,040,000 7,040,000 522,SOO 12.8 7,040,000 8,040,000 650,800 13.6 8,040,000 9,.040,000 786,800 14.4 9,040,000 rO,040,000 930,800 15.2 10,040,000 --~-------------1,082,800 16.() -, t~'. r l Ii .1;I ., Page 40 .. U.S.-GOYERNMENT PRINTIHG OFFICE 059--16-77750-1 "• ADDITIONAL INSTRUCTIONS FOR ESTATES OF NONRESIDENTS NOT CITIZENS OF THE UNITED STATES , 1_ I.:.These instructions should be read in conjunction with the •"General Instructions"beginning on page 2 and the detailed '.instructions for the several schedules. C\Requirement of return.-An estate tax return must be filed for the estate of a nonresident not a citizen of the United States if the part of his gross estate (as defined by the statute) situated in the United States exceeded a value of $2,000 J at the date of death. -Form of return.-A simplified form of estate tax return,Form 706NA,"United States Nonresident Alien Estate Tax Return," -has been provided for use in the case of a nonresident not a~citizen of the United States..However,the return must be made on Form 706 instead of on the simplified form 706NA under the following circumstances: (1)In case the decedent made any transfer during life or possessed,exercised,or released any power of appointment with respect to property situated in the United States,re- quiring any disclosure or affirmative answer under Sched- ule G or H of this return. (2)In case a deduction for charitable!public,and simi~ar gifts and bequests (Schedule N),credIt for Federal gIft taxes,01'credit for tax on prior transfers is claimed. (3)In case the decedent was domiciled in France,or was a citizen or subject of,or domiciled in Greece and a pro- rated allowance authorized by treaty extends beyond the exemption,such as a prorated deduction for a bequest to a fpreign charity. Plac:e for filing returns.-The return must be filed with the Director of International Operations,Internal Revenue Service, Washington,D.C.,20225,U.S.A.'... .Supplemental doc:uments.-If the decedent died testate,a cer- .tified copy of the will must be filed.Other supplemental docu- ments may be required as explained below and under the instruc- tions for the several schedules. Death tax c:onvention.-If a death tax convention is applicable, consult the provisions thereof and regulations issued pursuant•thereto.See page 6 for list of conventions and effective dates. ~Property situated in the United States.-The entire gross estate wherever situated in the case of a nonresident not a citizen of the United States is made up in the same way as that of a citizen 01'resident and,therefore,includes not only all property (see General Instruction J,page 4,for real property situated outside of the United States required to be incltlded in the gross estate) beneficially owned by the decedent,but also joint estates with right of survivorship,tenancies by the entirety,community property,life insurance proceeds,property transferred by the decedent during his life,and property subject to decedent's gen- eral power of appointment,as more fully explained under the instructions for the several schedules.However,the taxable estate is the part of'the gross estate situated in the United States,less the authorized deductions.Only the part of the gross estate situated in the United States should be set forth underthe appropriate "Schedules A to I and recapitulated under Schedule 0."The term "United States,"when used in a geo- graphical sense,includes only the States,and the District of Columbia.Property transferred during the decedent's life,and includible in the entire gross estate wherever situated,is deemed situated within the United States if such property was so situ- ated either at the time of the transfer or at the time of death. The following rules are applicable in determining whether property owned by a nonresident not a citizen of the United States is situated in the United States:(1)Real property and tangible personal property.-These items of property are within the United States if physically located therein.(2)Insur- ance.-The proceeds of insurance on the life of a nonresident not a citizen of the United States are not situated in the United States.(3.)Bank deposits.-See "Instructions for Schedule COl on page 10.(4)Works of art.-See "Instructions for Schedule F"on page 16.(5)Written evidences of intangible property •which are treated as being the property itself.-Except as pro- vided for by treaty,these items of property are situated in the United States if physically located therein.For situs rules ap- plicable to bonds and to stock of domestic and foreign corpora- tions,see "Instructions for Schedule B"on page 8.(6)In- tangible personal property,the written evidence ofwhich is not treated as being the property itself,such as a simple debt or open account.-Such property,except as provided for by treaty, is within the United States if consisting of a property right arising from or enforceable against a resident of the United States or a domestic corporation (public 01'private). 059-16-77750-1 Deduc:tion of administration expenses.c:laims.etc:.-Deduction may be taken of the proportion of expenses,claims,etc.(Sched- ules J to L),that the value of the part of the gross estate situ- ated in the United States beal's to the value of the entire gross estate wherever'situated.Items of deduction may be set forth under the appropriate Schedules J to L,irrespective of whether they were incurred or expended within or without the United States.The marital deduction is not available in the estate of a nonresident not a citizen of the United States,except in the case of a resident of FI'ance.However.no deduc:tion what· ever may be taken unless the value of the entire gross estate wherever situated is entered at item 3 of Sc:hedule Q.,See Gen- eral Instruction J,page 4,for l'eal property situated outside of the United States required to be included.The entire gross estate must be valued as of the date of the decedent's death; or if the alternate valuation authorized by section 2032 of the Code is adopted,such valuation must be applied to the entire gross estate.Adequate proof in support of items 3 and 4 of Sc:hedule Q must be submitted;otherwise.this deduc:tion will be disc!llowed.For this purpose there should be submitted a c:ertified c:opy of the foreign death tax return;or.if no suc:h return was filed, a c:ertified c:opy of the inventory of the estate together with the sc:hedule of debts and c:harges filed with the foreign c:ourt of pro- bate jurisdic:tion.Additional proof ma.y be required in specific cases. Charitable,public:,and similar gifts and bequests.-Except as ' provided otherwise by treaty,a deduction may be taken under Schedule N only if the transfer was to a corporation or associ- ation organized in the United States or to trustees for use in the United States.For information relative to the deduction allowable under the Death Tax Conventions with France and Greece,see the regulations issued pursuant to the conventions. Exemption.-Except as hereinafter provided,an exemption of $2,000 is authorized in the case of a nonresident not a citizenoftheUnitedStates.,If th'e decedent was domiciled in Canada,see "Convention with Canada"below. In the case of a'decedent who was neither a citizen nor a resident of the United States,but who was a citizen of or domiciled in Australia,No'rway or Switzerland,a resident of Finland,was domiciled in France,was a citizen or subject of or domiciled in Greece,was a national of or domiciled in Italy,or in a case where a beneficiary was domiciled in Japan,the Death Tax Conventions with those countries authorize,under certain conditions,a prorated exemption in excess of $·2,000. Also,in the case of a decedent who was a citizen of the 'United States and who was a resident of a United States possession at the date of his death,and who acquired his citizenship solely by reason of his connection with such possession,and who is therefore considered a nonresident not a citizen of the United States,a prorated exemption in excess of $2,000 is authorized. The prorated exemption is the proportion of,the exemption authorized for estates of citizens and residents of the United States that the value of the property situated in the United States bears to the value of the entire gross estate wherever situated.Supplemental Form 706g (Computations of Taxable Estates)has been provided for use in computing the taxable estate under the'provisions of the Death Tax .conventions in the case of the estate of a resident of France or Greece not a citizen of the United States.In ev,ery other case the taxable estate of a nonresident not a citizen of the United States must be computed on Schedule Q.When Form 706g is used,it con- stitutes a part of the return,is to be substituted for Schedule Q and should be inserted in lieu of page 35. Convention with Canada.-Our present convention with Canada exempts from Federal estate tax certain estates of non- resident alien decedents who were domiciled in Canada and died after December 31,1958.'The convention also contains a provi- sion preventing the estate tax from reducing below $15,000 the value of the estate of such a decedent which is subject totax.If the value of the taxable estate,before allowance of the specific exemption of $2,000,does not exceed $15,000,the estate is exempt from estate tax.If the.value,befol'e allowance of the specific exemption is less than $15,932.59,the gross tax (item 1, page 1)is equal to the amount inexcess of $15,000.For ex- ample,if the value is $15,500,the,gross tax.on the taxable estate is $500.If the value of the taxable estate before allowance of the specific exemption is more than $15,932.58,the estate tax.is to be calculated by the use of Table A,'page 40,after allowance of the specific exemption.The prorated exemption (item 7, schedule Q)is not allowable under our present convention with Canada,but may be allowable in cases where the prior conven-tion is applicable, Page 39