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consideration under section 2053(c)(1)(A). It is not a sham, and
we hold that it is deductible from Kimberly’s gross estate.8
II. Administrative expenses
The Commissioner has conceded in his posttrial brief the
deductibility of administrative expenses incurred by the trusts
in 2000, but contests all later expenses. The problem for the
estate is that it neither secured the admission of a summary
exhibit--Exhibit 120-P--nor elicited testimony from the Key Bank
employee who testified about the estate’s fees and expenses after
Kimberly died. That leaves those expenses unsubstantiated for
the years 2001-2004, and so we must disallow them. The estate is
quite right, however, about the expenses of this litigation;
those expenses are governed by Rule 156:
If the parties in an estate tax case are
unable to agree under Rule 155 * * * upon a
deduction involving expenses incurred at or
after the trial, then any party may move to
reopen the case for further trial on that
issue. [Emphasis added.]
The parties are encouraged to reach a settlement on this
issue, but in any event
Decision will be entered under
Rule 155.
8 Any predeath interest accrued under the terms of the
promissory note follows the loan (i.e., is payable to Clyde as
the holder of the note) and thus is also deductible by the
estate. See sec. 20.2053-4, Estate Tax Regs.
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