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only expenses in administering property not subject to
claims which are allowed as deductions are those occa-
sioned by the decedent’s death and incurred in settling
the decedent’s interest in the property or vesting good
title to the property in the beneficiaries. Expenses
not coming within the description in the preceding
sentence but incurred on behalf of the transferees are
not deductible.
(c) The principles set forth in paragraphs (b),
(c), and (d) of � 20.2053-3 (relating to the allowance
of executor’s commissions, attorney’s fees, and miscel-
laneous administration expenses of the first category
[of deductions set forth in section 20.2053-1(a)(1),
Estate Tax Regs.]) are applied in determining the
extent to which trustee’s commissions, attorney’s and
accountant’s fees, and miscellaneous administration
expenses are allowed in connection with the administra-
tion of property not subject to claims.
The only dispute between the parties under section 2053(b)
is whether the administration expenses claimed as deductions
would be allowable as deductions under section 2053(a)(2).
Section 2053(a)(2), relating to expenses incurred in administer-
ing property included in the gross estate and subject to claims,
allows a deduction from the value of the gross estate of “such
amounts * * * for administration expenses * * * as are allowable
by the laws of the jurisdiction * * * under which the estate is
being administered.” Section 20.2053-3(a), Estate Tax Regs.,
provides that amounts deductible as
“administration expenses” of the first category * * *
[under section 2053(a)(2)] are limited to such expenses
as are actually and necessarily incurred in the admin-
istration of the decedent’s estate; that is, in the
collection of assets, payment of debts, and distribu-
tion of property to persons entitled to it. * * *
Expenditures not essential to the proper settlement of
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