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benefit of the heirs may not be deducted from the gross estate,
if not essential to the settlement of the estate. Id.
The gross estate here, in addition to one-half of the value
of Western, consisted of cash, securities, and the Bradley rental
property. The debts, funeral expenses, and other administrative
expenses, totaling $124,022, consumed the $56,983 of cash. In
that setting the executor decided to obtain cash from refinancing
and mortgaging Bradley, rather than selling securities. Mr.
McReady, the executor, explained that he mortgaged Bradley,
“because the * * * [Bradley] was then occupied by a tenant under
a long-term lease.”
Respondent contends that one of the factors we should
consider is that the estate’s major debt was $95,000, which was
owed to the executor, Mr. McReady, causing the estate’s lack of
liquidity. Respondent also points out that the securities (over
$200,000) or Bradley could have been sold subject to the long-
term lease to pay off the $95,000 debt due Mr. McReady and the
other obligations of the estate. Respondent also argues that the
estate failed to show that a sale of Bradley would have been
insufficient to pay off the debts.
We agree with the estate that the $10,070 was necessarily
incurred in the administration of the estate. We surmise that
Mr. McReady’s explanation that Bradley was subject to a long-term
lease means that Bradley would bring less than a fair market
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