- 22 -
commissions and attorney’s fees allowable as a deduction is
limited to the amount determined under section 7-601(b) of Md.
Code Ann., Est. & Trusts (1999) (Md. Code Ann., Est. & Trusts,
sec. 7-601(b)) (quoted and discussed below). Consequently,
according to respondent, the estate is entitled to deduct under
section 2053 only $11,607 of personal representative’s commis-
sions.
In determining the taxable estate, section 2053(a)(2),
relating to expenses incurred in administering property that is
included in the gross estate and subject to claims, allows a
deduction from the value of the gross estate of “such amounts
* * * for administration expenses * * * as are allowable by the
laws of the jurisdiction * * * under which the estate is being
administered.” Section 20.2053-3, Estate Tax Regs., provides in
pertinent part:
(a) In general. The amounts deductible from a dece-
dent’s gross estate as “administration expenses” of the
first category (see paragraphs (a) and (c) of �
20.2053-1) are limited to such expenses as are actually
and necessarily incurred in the administration of the
decedent’s estate; that is, in the collection of as-
sets, payment of debts, and distribution of property to
the persons entitled to it. * * * Expenditures not
essential to the proper settlement of the estate, but
incurred for the individual benefit of the heirs,
legatees, or devisees, may not be taken as deductions.
21(...continued)
tion, what would be a fair and reasonable total charge
for the cost of administering the estate under this
article, and it shall not allow aggregate compensation
in excess of that figure.
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