-56-
consider whether the expense was "necessarily incurred" as
required under respondent's regulations.
Section 20.2053-3(d)(1), Estate Tax Regs., provides:
Expenses necessarily incurred in preserving and distributing
the estate are deductible, including the cost of storing or
maintaining property of the estate, if it is impossible to
effect immediate distribution to the beneficiaries.
Expenses for preserving and caring for the property * * *
may not be allowed for a longer period than the executor is
reasonably required to retain the property.
Therefore, in resolving the issue of whether the estimated
expense of maid service for 5 years is deductible from the value
of the gross estate we must find: (1) It is impossible to effect
immediate distribution of decedent's interest in the condominium
to the beneficiaries, and (2) the expense is necessarily incurred
in preserving the estate prior to distribution of property to the
persons entitled to it and not incurred for the individual
benefit of the heirs, legatees, or devisees.
At the time of trial of this case, decedent had been dead
for more than 5 years, and the executors of her estate had not
yet distributed her interest in the condominium to the
beneficiaries. Despite the extended length of time, petitioner
offered no evidence of any impediment to the distribution or sale
of the property that would explain the delay. Furthermore, Jack
testified that decedent's interest in the condominium was never
offered for sale.
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