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shortfall of nearly $50,000. The estate paid Kathleen $25,000 by
check dated October 19, 1990. In keeping with decedent's
instructions in Article II of the 1987 will, the estate withheld
the remaining amount pending resolution of the estate taxes due.
The estate issued Kathleen a check in the amount of $20,000
on March 8, 1991, in settlement of her claim for back child
support. On March 12, 1991, Kathleen signed a Release of All
Claims for Child Support "accrued at any time through the date of
this release, specifically including, but not limited to, the sum
of Three Hundred and No/100 ($300.00) Dollars per month
additional child support due from September 1984, through March
1990."
On Schedule K of the Federal estate tax return, the estate
claimed a deduction of $100,000 listed as "Kathleen L. Lyon -
insurance owed per separation agreement." Schedule K contained a
notation that $25,000 of the $100,000 remained unpaid.
Respondent disallowed the $100,000 deduction in full.
OPINION
Section 2053(a)(3) provides a deduction from the value of
the gross estate for the amount of a claim against the estate as
allowable by the law of the jurisdiction under which the estate
is being administered. In the case of a claim founded on a
promise or agreement, the deduction is "limited to the extent
that [it was] contracted bona fide and for an adequate and full
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