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the interest as an administrative expense of the estate. In this
regard, we note that the trusts that now hold the shopping center
property are unrelated to the estate and to the two trusts that
made up the bulk of the estate’s assets.
Respondent emphasizes the following facts in this case that
he contends support a holding that the interest would not be
deductible under section 2053: (1) The real estate securing the
loans in question was transferred to and is under the control of
the beneficiaries; (2) the beneficiaries’ trusts, not the estate,
chose to secure a loan in 1998 rather than to sell the realty
because of their dissatisfaction with market conditions; (3) the
estate and the underlying trust have already benefited from five
extensions of the time for payment of the estate tax, two before
the property transfer to the beneficiaries’ trusts and three
after the transfer; (4) at the end of the extension period
permitted by respondent, it was the trustees of unrelated trusts
who made the choice to borrow to pay the estate tax, rather than
to sell the property; and (5) the loan is secured by property not
held by the estate and is payable over 20 years. These factors,
contends respondent, indicate that petitioner has not established
that the decision to borrow was necessary to the administration
of the estate.
Petitioner, in an attempt to reconcile respondent’s
contentions, makes the following points: (1) The QTIP trust had
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