Robert J. Sugarman - Page 6

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          fails to meet the four enumerated criteria, that portion is not             
          alimony and is not deductible by petitioner.                                
               Neither of the parties argues that the requirements of                 
          subparagraphs (A), (B), and (C) of section 71(b)(1) have not been           
          satisfied.  Their disagreement focuses on the provisions of                 
          subparagraph (D).  Petitioner contends that had Colleen died                
          before the end of the stream of payments, under Pennsylvania law            
          the liability to make the payments would have terminated.                   
          Respondent contends that if Colleen had died prior to the end of            
          the payment stream, her estate would have had a valid claim to              
          the continued payments under Pennsylvania law.  Therefore, we               
          must look to Pennsylvania law to determine whether petitioner's             
          liability for the payments called for under the addendum                    
          terminates at the death of the payee spouse.  Sampson v.                    
          Commissioner, 81 T.C. 614, 618 (1983), affd. without published              
          opinion 829 F.2d 39 (6th Cir. 1987).                                        
          Pennsylvania Family Law                                                     
               Section 71(b)(1)(D) requires that the payor spouse must not            
          be liable for any payments under the divorce or separation                  
          instrument after the death of the payee spouse.  Under Div. Pa.             
          Code sec. 508 (1989), the right to receive alimony pursuant to              
          the alimony and support provisions of the Divorce Code shall                
          cease upon the death of the payee party.  Thus, if any of the               
          disputed payments are alimony under Pennsylvania law, that                  






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