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Estate Tax Regs., disallows a deduction that is "taken upon the
basis of a vague or uncertain estimate."
Petitioner argues that it is entitled to a deduction
pursuant to section 2053(a)(3) for the entire amount reported on
the estate tax return. Petitioner relies upon Ithaca Trust Co.
v. United States, 279 U.S. 151, 155 (1929), in which the Supreme
Court ruled that for purposes of determining the value of the
deduction for a charitable remainder, a life tenant's premature
death could not be substituted for the actuarial computation of
the life tenant's life expectancy as of the date of the
decedent's death. The Supreme Court stated that "The estate so
far as may be is settled as of the date of the testator's death."
Id. Petitioner contends that the Supreme Court's rationale in
Ithaca Trust supports petitioner's position in the instant case.
In Estate of Van Horne v. Commissioner, 78 T.C. 728, 733-738
(1982), affd. 720 F.2d 1114 (9th Cir. 1983), we reviewed the case
law in this area and determined that the principle articulated in
Ithaca Trust is generally applicable in cases involving the
valuation of a claim that is valid and fully enforceable on the
date of the decedent's death. See Estate of Kyle v.
Commissioner, 94 T.C. 829, 848-851 (1990).8 On the other hand,
8In Estate of Kyle v. Commissioner, 94 T.C. 829, 849 (1990),
and Estate of Van Horne v. Commissioner, 78 T.C. 728, 736-737
(1982), affd. 720 F.2d 1114 (9th Cir. 1983), we reviewed the case
law in this area and noted that all the cases dealing with
postdeath events are not "easily reconciled". We see no need to
(continued...)
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