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expectation of gain or profit. There was no employment
relationship.
IV. First Claim for Refund
Petitioners claim an overpayment of estate tax in the amount
of $212,438.06 on account of their failure to deduct $797,475.50
as a claim against the estate. That amount (the inheritance)
represents the value of substantially all of the assets received
by Bell pursuant to decedent’s last will and the accompanying
trust agreement (together, the will). Petitioners argue that the
inheritance was paid pursuant to decedent’s obligation to provide
for Bell in his will, which obligation was established by the
Agreement.
Section 2053(a) provides that the value of the taxable
estate shall be determined by deducting from the value of the
gross estate certain items, including claims against the estate.
See sec. 2053(a)(3). In pertinent part, section 2053(c)(1)(A)
provides: “The deduction allowed by this section in the case of
claims against the estate, unpaid mortgages, or any indebtedness
shall, when founded on a promise or agreement, be limited to the
extent that they were contracted bona fide and for an adequate
and full consideration in money or money’s worth”.
We first note that the Agreement is not mentioned in the
will, and petitioners have failed to show that Bell has made any
claim against the estate. Petitioner Kyle C. Brooks is
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