Petitioner Sherman, a widow then 82 years old, was hospitalized in early June of 1976. She had been living alone in her own home, and when discharged from the hospital, was admitted to a nursing home on June 20, 1976. On July 30, 1976, she transferred her house to petitioners Janet S. Jones and Jerome P. Jones, her daughter and son-in-law, respectively. On April 25, 1977, Janet Jones sold the house and deposited the net proceeds of $26,117.98 in a bank account in her own...
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