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administration expense under section 20.2053-3(a), Estate Tax
Regs., and (2) an allowable expense under Ohio probate law (two-
part test). Estate of Millikin v. Commissioner, 125 F.3d at 345-
346.
2. Ohio Law
Under Ohio law, an estate may pay administration expenses
which are necessary, reasonable, and just. Ohio Rev. Code Ann.
sec. 2113.36 (Anderson 1994); Union Commerce Bank v.
Commissioner, 339 F.2d 163, 168 (6th Cir. 1964), affg. in part,
revg. in part and remanding 39 T.C. 973 (1963).
3. The Estate Tax Regulations
A decedent's estate may deduct administration expenses from
the value of the gross estate if they "are actually and
necessarily incurred in the administration of the decedent's
estate" and are paid to settle an estate and to transfer the
property of the estate to the beneficiaries or to a trustee.
Sec. 20.2053-3(a), Estate Tax Regs.5 The parties agree that the
5 Sec. 20.2053-3(a), Estate Tax Regs. provides in part:
The amounts deductible from a decedent's gross estate
as "administration expenses" * * * are limited to such
expenses as are actually and necessarily incurred in
the administration of the decedent's estate; that is,
in the collection of assets, payment of debts, and
distribution of property to the persons entitled to it.
The expenses contemplated in the law are such only as
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