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suant to the terms of the settlement trust, outlined supra, Ann
Goss possessed an income interest in this property for her life.
The parties have agreed that the fair market value of that income
interest was $6,741,453.
After decedent's death, a Federal estate tax return was
filed by the executors of decedent's estate. In the return, the
executors claimed deductions for the value of Ann Goss' life
interest in decedent's stock and the value of the Edwards
children's remainder interest. Respondent, in the notice of
deficiency, disallowed both deductions. Respondent has subse-
quently conceded that the claim of Ann Goss is deductible. The
deductibility of the remainder interest of the Edwards children,
however, is still in dispute.
Discussion
Section 2053(a)(3) provides that the value of the gross
estate is determined by deducting the amount of claims against
the estate. Section 2053(c)(1)(A) limits the deduction for
claims founded on a promise or agreement to the amount of claims
that were contracted for full and adequate consideration. One
purpose of this consideration requirement is to prevent decedents
from reducing their gross estate through contractually arranged
transfers that serve a "donative or testamentary intent." Estate
of Huntington v. Commissioner, 100 T.C. 313, 316 (1993), affd. 16
F.3d 462 (1st Cir. 1994); see also United States v. Stapf, 375
U.S. 118, 130-133 (1963). However, liabilities imposed by law
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