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Administration expenses include (1) executor’s commis-
sions; (2) attorney’s fees; and (3) miscellaneous
expenses. * * *
Section 2053(b) allows deductions of amounts representing
expenses incurred in administering property that is included in
the gross estate and not subject to claims to the same extent
such expenses would be allowable as deductions under section
2053(a)(2) if such property were subject to claims, and such
amounts are paid before the expiration of the period of limita-
tion for assessment provided in section 6501. Section 20.2053-8,
Estate Tax Regs., provides in pertinent part:
Usually, these expenses [expenses in administering
property not subject to claims] are incurred in connec-
tion with the administration of a trust established by
a decedent during his lifetime. They may also be
incurred in connection with the collection of other
assets or the transfer or clearance of title to other
property included in a decedent’s gross estate for
estate tax purposes but not included in his probate
estate.
(b) These expenses may be allowed as deductions
only to the extent that they would be allowed as deduc-
tions under the first category [of deductions set forth
in section 20.2053-1(a)(1), Estate Tax Regs.] if the
property were subject to claims. See � 20.2053-3. The
only expenses in administering property not subject to
claims which are allowed as deductions are those occa-
sioned by the decedent’s death and incurred in settling
the decedent’s interest in the property or vesting good
title to the property in the beneficiaries. Expenses
not coming within the description in the preceding
sentence but incurred on behalf of the transferees are
not deductible.
(c) The principles set forth in paragraphs (b),
(c), and (d) of � 20.2053-3 (relating to the allowance
of executor’s commissions, attorney’s fees, and miscel-
laneous administration expenses of the first category
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