Estate of Margot Stewart, Deceased, Brandon Stewart, Executor - Page 8

                                        - 8 -                                         
          Accordingly, no deduction is allowed.  Sec. 2053(c)(1)(B); sec.             
          20.2053-6(b), Estate Tax Regs.                                              
          IV. Deduction of Debt Owed to Mr. Stewart Is Not Allowed                    
               The estate contends that it is entitled, pursuant to section           
          2053(a)(3), to deduct a debt owed to Mr. Stewart relating to the            
          purported reconciliation agreement, between Mr. Stewart and                 
          decedent, to share the income and expenses relating to both                 
          properties.  An estate may deduct the value of a claim based on a           
          decedent’s promise to pay only if the liability was “contracted             
          bona fide and for adequate and full consideration in money or               
          money’s worth”.  Sec. 2053(c)(1)(A); See Estate of Scholl v.                
          Commissioner, 88 T.C. 1265, 1279 (1987).  There was no                      
          reconciliation agreement.  Accordingly, no deduction is allowed.            
               Contentions we have not addressed are irrelevant, moot, or             
               To reflect the foregoing,                                              

                                                  Decisions will be entered           
                                             under Rule 155.                          

Page:  Previous  1  2  3  4  5  6  7  8  

Last modified: May 25, 2011