Estate of Algerine Allen Smith, Deceased, James Allen Smith, Executor - Page 21

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          months later, the Association's bylaws were amended to permit the           
          settlement of outstanding claims for less than the full amount              
          owed.  The estate ultimately settled the claim for less than the            
          amount originally sought (and reported by the estate on its                 
          return).  Id. at 1250.                                                      
               The Court of Appeals for the Ninth Circuit found that the              
          Association's lien claims were certain and enforceable when the             
          decedent died.  The Court of Appeals noted that at the time of              
          the decedent's death, the Association lacked the authority to               
          settle claims for less than their full amount.  In addition, the            
          estate lacked even a colorable defense against the Association's            
          claims.  The Court of Appeals ruled that "when claims are for               
          sums certain and are legally enforceable as of the date of death,           
          post-death events are not relevant in computing the permissible             
          deduction."  Id. at 1254.  The estate was entitled, therefore, to           
          a deduction for the claim in the amount reported on its estate              
          tax return.                                                                 
               Petitioner's reliance on Propstra is misplaced.  In                    
          Propstra, the Court of Appeals explained that the threshold                 
          determination to be made under section 2053(a)(3) is whether the            
          claim in question was certain and enforceable at the time of the            
          decedent's death.  See id. at 1253.  The Court of Appeals                   
          precluded consideration of postdeath events only where a claim              
          was found to be certain and enforceable on the date of death.               
          Id. at 1254; see also Estate of Van Horne v. Commissioner, 720              




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