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Example (2) also states that the result would be the same even if
the lump sum was required to be discounted to reflect the
prepayment.
Here, petitioner was required by the 1995 decree to pay
Okerson monthly alimony totaling $117,000. This obligation would
have terminated upon Okerson’s death, but petitioner would then
have been required to pay the unpaid alimony towards the
education of his and Okerson’s children until the children
completed 4 years of college. Petitioner also was required by
the 1997 decree to make additional monthly alimony payments
totaling $33,500 to Okerson’s attorney. This obligation also
would have terminated upon the death of Okerson, but petitioner
would then have been required to continue paying the unpaid
amount to Okerson’s attorney. Because under both decrees the
substitute payments would have been the same amount as the
amounts payable as alimony under the decrees, we conclude
consistently with the temporary regulations and the examples set
forth therein and discussed above that petitioner is not entitled
to deduct any of the $21,600 as alimony for Federal income tax
purposes.
In sum, when the terms of the applicable divorce documents
state, as here, that the payor spouse upon the death of the payee
spouse must continue to make payments in substitute of payments
which are required to be paid as alimony, the post death payments
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