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August 6, 1989, transfer; the value of the gross estate was
reduced by this amount. The executors reported $50,000 on the
Form 706 as a claim against the estate for the September 25,
1989, transfer; this amount has not yet been repaid.
Respondent determined that decedent's gross estate should
not be reduced by the $50,000 reported on the Form 706, because
repayment of the transfer is not a personal obligation of
decedent that is enforceable under the jurisdiction in which the
estate is administered. Petitioner asserts the $50,000
transferred to decedent on August 6, 1989, was a loan that she
was obligated to repay. By an amendment to its petition,
petitioner increased the amount of the claimed deduction by
$50,000 to include the transfer on September 25, 1989, which it
asserts was also a loan that decedent was obligated to repay.
Respondent, in the answer to petitioner's amendment, denied the
increase on the same ground as the denial of the original amount.
As discussed before in this opinion, section 2053
provides that the value of the gross estate shall be determined
by deducting from the value of the gross estate the amount of the
claims against the estate as are allowable by the laws of the
jurisdiction under which the estate is being administered. Sec.
2053(a)(3). "The amounts that may be deducted as claims against
a decedent's estate are such only as represent personal
obligations of the decedent existing at the time of his death
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