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not by liquidity problems or valuation disputes, but by the sale
of the mansion, and thus had been unduly prolonged. See sec.
20.2053-3(d)(1), Estate Tax Regs. (expenses of caring for and
preserving property will not be allowed "for a longer period than
the executor is reasonably required to retain the property").
The facts in this case are distinguishable from those of
Hibernia Bank. In this case, the most valuable estate assets
were the shares of class B and class E stock in the Company. The
Company was neither able nor required to redeem enough of these
shares to provide funds to pay all death taxes and all the
estate's other actual or potential liabilities when due.
Further, the executors believed that the Company stock was likely
to increase in value. Accordingly, borrowing funds, rather than
selling stock, allowed decedent's estate to more easily meet its
burdens by taking advantage of the increasing value of the stock.
The Company's shares of stock were less marketable than in
Hibernia Bank as they were not publicly traded. While it is true
that the executors of decedent's estate were also directors of
the Company, this fact alone will not make the loans unauthorized
as the executors have been shown to have acted in the best
interest of decedent's estate.
Decedent's estate further relies on Estate of Todd v.
Commissioner, 57 T.C. 288 (1971). In Estate of Todd, the estate
borrowed $300,000 from a private source. The estate consisted
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