Estate of Howard Gilman, Deceased, Bernard D. Bergreen and Natalie Moody, Executors - Page 12

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          $3,038,000 of which had been paid.  The executors elected to pay            
          $1 million of these expenses from income by executing Form 4421,            
          Declaration--Executor's Commissions and Attorney’s Fees.                    
               2.   The Executors’ Decision To Pay the Estate Tax in Full             
               During the examination of this case, which began in 2001,              
          the Internal Revenue Service (IRS) examiner told the tax counsel            
          for the estate that, because the estate had transferred assets to           
          HG, the estate’s ability to continue to defer estate tax under              
          section 6166 was doubtful, and acceleration of payment of all               
          estate tax under section 6166(g) would likely result.                       
               In January and February 2002, the executors obtained written           
          opinions from tax attorneys recommending that the estate pay its            
          estate tax in full to avoid the risks of acceleration under                 
          section 6166(g).  The executors decided to follow that advice.              
               3.   Farm Credit Loan                                                  
               The executors estimated that the estate needed $38 million             
          to pay: (a) $9,797,400 for Federal estate tax and interest; (b)             
          $2,915,900 for New York State estate tax and interest; (c)                  
          $19,470,525 for compensation for Bergreen; (d) $5 million for               
          compensation for Davis; and (5) $816,175 for other miscellaneous            
          administration expenses.                                                    
               On October 18, 2002, Bergreen and Moody, acting as                     
          executors, borrowed $38 million from Farm Credit Bank of North              
          Florida, CA (Farm Credit loan).  The loan was secured by a                  

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