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being administered. Sec. 2053; Estate of Swayne v. Commissioner,
43 T.C. 190 (1964). The amounts deductible as administration
expenses are limited to such expenses as are actually and
necessarily incurred in the administration of the decedent’s
estate. Sec. 20.2053-3(a), Estate Tax Regs. Expenditures not
essential to the proper settlement of the estate but incurred for
the individual benefit of the heirs, legatees, or devisees are not
allowed as deductions. Id. Further, attorney’s fees incurred by
beneficiaries incident to litigation as to their respective
interests are not deductible if the litigation is not essential to
the proper settlement of the estate. Sec. 20.2053-3(c)(3), Estate
Tax Regs.
Respondent concedes that the services provided by Mr. Glover
and the Glovers’ attorneys led to the discovery of Ms. Hurley’s
misappropriation and the Eckell, Sparks malpractice, and the
removal of Ms. Hurley as executrix. Respondent also agrees that
the services were essential to the proper settlement of the estate.
Respondent argues, however, that services provided by the attorneys
for the Glovers’ will contest and for the attorneys’ involvement in
the malpractice litigation were unnecessary to the settlement of
the estate and were primarily for the personal benefit of the
Glovers. Furthermore, respondent contends that the record in this
case does not establish the portion of the fees allocable to the
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