MEMORANDUM FINDINGS OF FACT AND OPINION

CHIECHI, JUDGE: Respondent determined a deficiency of $ 15,248 in Federal estate tax (estate tax) with respect to the estate of Constance R. Grant (the estate). The issue remaining for decision is whether the estate is entitled to deduct certain amounts claimed under section 2053. ¹ We hold that it is to the extent stated herein.

FINDINGS OF FACT

Some of the facts have been stipulated and are so found.

At the time the petition was filed, P. Walker Grant, Jr. (Mr. Grant), the son of decedent and a personal representative of the estate, resided in Shelburne, Vermont. ^{21999 Tax Ct. Memo LEXIS 452">*453}

On October 1, 1991, Ms. Grant, who was residing and domiciled in Montgomery County, Maryland, executed a declaration of trust (declaration of trust) under which she placed most of her real and personal property into a revocable trust known as the "CONSTANCE R. GRANT REVOCABLE TRUST" (Trust). The declaration of trust provided in pertinent part:

     2. Trust Estate. I hereby transfer, assign,

   convey and quit claim unto myself, as Trustee, and unto

   my successors in trust all of the property enumerated

   in Schedule A hereto attached, to have and to hold such

   property, and any other property which may be added to

   the Trust Estate pursuant to the provisions hereof, all

   of which property is hereinafter collectively referred

   to as the "Trust Estate".

     3. Trust and Successor Trustee. So long as I am alive and

   competent, I shall serve as Trustee of the Trust Estate. In the

   event of the death or resignation of the Donor [decedent] as

   Trustee, or if the Donor's personal physician certifies in

   writing to the Donor's children, PRESTON WALKER GRANT, JR. and

   KATHRYN LYNN GRANT ADAMS, that, in his judgment, 1999 Tax Ct. Memo LEXIS 452">*454 the Donor is

   physically or mentally unable to administer the Trust Estate,

   then PRESTON WALKER GRANT, JR., KATHRYN LYNN GRANT ADAMS and

   DONALD R. WILSON, shall serve as Successor Trustees. If the

   Donor's physician subsequently certifies in writing to the

   Successor Trustees that the donor has recovered and is currently

   mentally and physically able to serve as Trustee, the

   appointment of the Substitute Trustee shall terminate and the

   Donor shall be restored as Trustee.

     *     *     *     *     *     *     *

     4. Revocation. I hereby reserve the right at any time, and

   from time to time, during my lifetime, to revoke the Trust

   Estate, in whole or in part, or to change, alter, modify or

   amend any of the terms and provisions hereof, and to withdraw

   all funds and other property, in whole or in part, without the

   consent of any other person.

      *     *     *     *     *     *     *

     7. Distribution of Income and Principal During My Lifetime.

   During my lifetime, I shall have the power to withdraw any part

   or all of the net income and principal of the Trust. Any net

   income not withdrawn shall be added to the principal.

      *     *     *     *     * 1999 Tax Ct. Memo LEXIS 452">*455     *     *

     8. Distribution on Death. Upon my death, the "Net Assets"

   (as hereinafter defined) of the Trust Estate shall be

   distributed by my Successor Trustee to my children PRESTON

   WALKER GRANT, JR. and KATHRYN LYNN ADAMS, in equal shares per

   stirpes, whereupon this trust shall terminate.

        (a) My Successor Trustees, in their sole discretion,

   are authorized to distribute the Net Assets of the Trust Estate

   to my children in kind or in cash, or partly in each. If they

   elect to distribute wholly or partly in cash, they are

   authorized, in their sole discretion, to sell so much or all of

   the Net Assets of the Trust Estate as they deems [sic]

   appropriate for that purpose.

     In distributing any tangible personal property of the Trust

   Estate to my children, I request my Successor Trustee to

   distribute such property to my children equally, but so far as

   practicable, in accordance with the preference of each child.

   In the event of any disagreement as to the allocation of any

   item of tangible personal property, the allocation shall be made

   by the Successor Trustee other than PRESTON WALKER GRANT, JR.

   and KATHRYN LYNN GRANT ADAMS (the "Independent 1999 Tax Ct. Memo LEXIS 452">*456 Trustee"). * * *

        (b) The term "Net Assets" shall mean the gross assets

   of the Trust Estate less any taxes or other expenses paid

   pursuant to the provisions of Paragraph 11 hereof.

     *     *     *     *     *     *     *

     10. Powers Of Trustee. The Trustee and any Successor

   Trustee hereunder shall have the fiduciary powers enumerated in

   Section 15-102 of the Estates and Trusts Article, Annotated Code

   of Maryland, as amended from time to time, specifically

   including the right to employ appropriate assistance in the

   administration of the Trust, including accountants, attorneys

   and investment advisors.

        In addition, the Trustee hereunder shall have the

   power to invest in common trust funds and uninsured money market

   funds; to invest and keep the Trust funds invested in such

   stocks, common or preferred, bonds, mortgages or other property

   as he/she may deem advisable or proper, without being restricted

   by any manner whatsoever as to the character of any investment

   by any statute, rule of law, or Court governing the investment

   of trust funds. My Trustee is authorized to borrow funds and

   pledge trust property without Court approval, and to 1999 Tax Ct. Memo LEXIS 452">*457 sell,

   lease, or otherwise convey any property of the Trust Estate on

   such terms and conditions as my Trustee may deem advisable, and

   to execute such deeds, mortgages, leases or other instruments as

   may be necessary or desirable to effectuate the encumbrance or

   conveyance of any trust property.

     *     *     *     *     *     *     *

     12. Court Administration. It is my express intention that

   the Trust hereby created shall not be administered under the

   supervision of any Court. * * *

     13. Maryland Law. This agreement has been executed by me in

   the State of Maryland, and all questions relating to its

   validity, construction and administration shall be determined in

   accordance with the laws of the State of Maryland.

     14. Compensation of Independent Trustee. I direct that

   DONALD R. WILSON or such other Independent Trustee who serves as

   Successor Trustee hereunder, shall receive a reasonable

   compensation from the Trust Estate for his or her services.

On October 1, 1991, the same date on which Ms. Grant executed the declaration of trust, she executed a last will and testament (decedent's will). Decedent's will provided in pertinent part:

                1999 Tax Ct. Memo LEXIS 452">*458 ITEM I

     I direct my Personal Representatives, hereinafter

   named, to pay the expenses of my last illness, funeral

   and burial, in such amount as they may deem proper and

   without regard to any limitation in the applicable

   local law as to the amount of such expense.

                ITEM II

     All of the rest, residue and remainder of my

   estate of whatsoever kind and wheresoever situate [sic]

   I give, devise and bequeath absolutely in fee simple

   unto my children, PRESTON WALKER GRANT, JR. and KATHRYN

   LYNN GRANT ADAMS, in equal shares per stirpes.

     In distributing any tangible property hereunder to

   my children, such property shall be distributed

   equally, but so far as practical, in accordance with

   the preference of each child.

              ITEM III

     I grant unto my Personal Representative [sic] all

   of the powers enumerated in the Estates and Trusts

   Article, Title 7, Section 401, Annotated Code of Maryland

   relating to powers granted to Personal Representatives.

                ITEM IV

     I appoint my children, PRESTON WALKER GRANT, JR.

   and KATHRYN LYNN GRANT ADAMS, as Personal Representatives. * * *

On April 2, 1994, Ms. Grant, who was still a resident 1999 Tax Ct. Memo LEXIS 452">*459 and domiciliary of Maryland, died. After decedent's death, Mr. Grant, Ms. Adams, and Donald R. Wilson served as the successor trustees of the Trust.

Only $ 11,253 of decedent's gross estate passed to her children Mr. Grant and Ms. Adams outside of the Trust (non-Trust property). The non-Trust property consisted of $ 256 in cash and traveler's checks; life insurance valued at $ 1,025; $ 7,228 in a jointly owned money market mutual fund; and $ 2,744 of other miscellaneous property. The balance of decedent's gross estate, which had an aggregate value of $ 865,480, passed to her children pursuant to paragraph 8 of the declaration of trust (nonprobate property). The nonprobate property consisted of, inter alia, decedent's residence located at 13730 Deakins Lane, Germantown, Maryland (decedent's residence), stocks and bonds, five money market mutual funds, a money market bank account, a checking bank account, jewelry, and household effects and furniture.

On or about January 4, 1995, Mr. Grant and Ms. Adams, as personal representatives of the estate, filed Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return (estate tax return), which showed estate tax due of $ 60,118. 1999 Tax Ct. Memo LEXIS 452">*460 In determining that amount of estate tax due, the estate tax return claimed a credit for state death taxes of $ 23,911. The Register of Wills, Montgomery County, Maryland, had determined that Maryland inheritance tax of $ 8,663.30 was due on $ 866,330 of the decedent's nonprobate assets consisting of $ 405,000 of real property and $ 461,330 of personal property.

The estate tax return reported as part of decedent's gross estate, inter alia, the following assets: decedent's residence valued as of the date of decedent's death pursuant to an appraisal at $ 405,000; stocks, including dividends, valued at $ 263,830; five money market mutual funds with total funds, including dividends, of $ 121,603; a checking bank account with funds of $ 31,274; a money market bank account with funds of $ 17,879; and a joint money market mutual fund with funds of $ 7,228. According to Schedule G of the estate tax return, the value of the decedent's nonprobate property was $ 865,480. That return also indicated that decedent did not have any debts and that there were no mortgages or liens on any property which she owned. The estate tax return claimed deductions for (1) $ 5,481 of Schedule J expenses ("Funeral 1999 Tax Ct. Memo LEXIS 452">*461 Expenses and Expenses Incurred in Administering Property Subject to Claims"), which included $ 1,865 of attorney's fees, and (2) $ 48,102 of Schedule L expenses ("Expenses Incurred in Administering Property Not Subject to Claims") (Schedule L).

None of the expenses claimed in Schedule L was approved by a Maryland court. Those expenses consisted of: (1) $ 11,250 and $ 5,625 of executors' fees paid to Mr. Grant and Ms. Adams, respectively; ³ (2) $ 840 of accountant's fees paid to Donald R. Wilson; (3) (a) $ 300 of appraisal fees to appraise decedent's residence, (b) $ 150 of appraisal fees to appraise certain of decedent's personal property, (c) $ 195 of appraisal fees to appraise decedent's jewelry, and (d) $ 240 of appraisal fees to appraise decedent's silverware; and (4) $ 29,502 ⁴ of miscellaneous administration expenses (miscellaneous administration expenses). Schedule L contained the following descriptions of the items of miscellaneous administration expenses enumerated in that schedule as set forth below:

Item                              Amount

Number             Description            Deducted

 4     Travel expenses to settle estate:

      P. Walker Grant, Jr., personal representative

      1999 Tax Ct. Memo LEXIS 452">*462 RFD 1 Box 3031, Killington VT 05751

      4/11/94 Killington VT to Darnestown MD -       $ 149

            505 mi, $ 2.75 tolls

      4/24-25/94 Darnestown MD to Killington VT

           via New Haven CT to broker for

           transfer of stocks - 534 mi,

           $ 13.85 tolls, Motel 6 New Haven

           4/24 $ 42.55                 212

      5/2/94 Killington VT to Darnestown MD -

           520 mi, $ 2.75 tolls              154

      6/5/94 Darnestown MD to Killington VT -

           505 mi, $ 2.75 tolls              149

      6/16/94 Killington VT to Darnestown MD -

           505 mi, $ 2.75 tolls              149

      7/14/94 Darnestown MD to Killington VT -

           505 mi, $ 2.75 tolls              149

      7/19/94 Killington VT to Darnestown MD -

           525 mi, $ 4.65 tolls              157

      8/8/94 Darnestown MD to Killington VT -

           525 mi, $ 3.65 tolls              156

      8/19/94 Killington VT to Darnestown MD -

           525 mi, $ 4.65 tolls              157

      9/22/94 Darnestown MD to Killington VT -

           525 mi, $ 3.65 tolls              156

     11/28/94 Killington VT to Darnestown MD -

           525 mi, $ 4.65 tolls              157

     12/11/94 Darnestown1999 Tax Ct. Memo LEXIS 452">*463 MD to Killington VT -

           525 mi, $ 3.65 tolls              156

 5     Travel expenses to settle estate:

     Kathryn Lynn Grant Adams, personal representative

     RR1 Box 6180 Plummers Ridge, Union (town of

     Milton) NH 03887

     4/3/94 Milton NH to Darnestown MD - 540

          mi, $ 10.85 tolls, $ 5.73 food on road      $ 173

     4/24/94 Darnestown MD to New Haven CT to

           broker for transfer of stocks -

           318 mi, $ 13.85 tolls, Motel 6 New

           Haven $ 42.55                 149

     4/25/94 New Haven CT to Darnestown MD -

           318 mi, $ 8.85 tolls, $ 14.26 food       115

     5/20/94 Darnestown MD to Milton NH - 540

           mi, $ 14.85 tolls               171

     5/28/94 Milton NH to Darnestown MD - 540

            mi, $ 10.85 tolls               167

     8/19/94 Darnestown MD to Milton NH - 540

           mi, $ 14.85 tolls               171

     8/25/94 Milton NH to Darnestown MD - 540

           mi, $ 10.85 tolls               167

     8/27/94 Darnestown MD to Milton NH - 540

           mi, $ 14.85 tolls               171

     9/1/94 Milton NH to Logan Airport, Boston

           - 85 mi, $ 1.00 toll               26

           Delta Airlines - Boston to Wash.1999 Tax Ct. Memo LEXIS 452">*464 DC

           to Boston                    60

           meal at airport                 4

     9/5/94 meal at Washington airport             10

           parking at Logan Airport            50

           Logan Airport to Milton NH - 88 mi,

          $ 2.00 tolls                   28

     9/12/94 Milton NH to Darnestown MD - 540

           mi, $ 10.85 tolls               167

    10/25/94 Darnestown MD to Milton NH - 540

           mi, $ 14.85 tolls               171

    10/28/94 Milton NH to Darnestown MD - 549

            mi, $ 9.45 tolls, $ 5.16 food         174

 6    Geoffrey C. Adams, RR1 Box 6180 Plummers

    Ridge, Union NH 03887 - expenses of travel

    from home in Milton NH with helper, both to

    work on house

    6/10/94 to MD - 551 mi, $ 8.85 tolls, $ 29.73

           meals                    $ 198

    6/14/94 return - 470 mi, $ 13.85 tolls            150

    6/24/94 to MD - 565 mi, $ 8.85 tolls, $ 32.92

           meals                     206

    6/27/94 return - 455 mi, $ 13.85 tolls,

          $ 22.00 meals                  168

    local miles in MD for supplies & dumping

    trash - 493 mi                       143

 7    Aetna Casualty Co., Hartford CT

    10/21/94 Excess liability policy 1999 Tax Ct. Memo LEXIS 452">*465 premium           36

 8    Banner Glass, Rockville MD

    replace glass table top - 8/15 $ 97.56            98

 9    Barrons, Gaithersburg MD                    97

    6/28/94 siding - $ 13.23

    7/6/94 shutters - $ 83.90

 10   Bell Atlantic/C&P Telephone                 400

    4/8/94 bill $ 112.39   9/8/94 bill $ 32.89

    5/8/94 bill $  58.61  10/8/94 bill $ 25.74

    6/8/94 bill $  46.63  11/8/94 bill $ 25.13

    7/8/94 bill $  41.73  12/8/94 bill $ 25.48

    8/8/94 bill $  31.82

 11   Bettar Appliance, Kensington MD               80

       12/2/94 oven selector switch - $ 79.80

 12   Mark Canon, c/o Mr. & Mrs. Michael Canon          389

       RR 1 Box 33A Herricks Rd., Brookville ME

       04617

    6/11-15/94 labor & expenses:  yard work,

       window cleaning, trash hauling - 38-1/4 hr at

      $ 8/hr, 11 trips to dump, misc. expenses

 13   Steve Chorba, 314 Elm St., Milton, NH 03851        $ 790

    6/10-13/94 labor: yard work, window

         cleaning - 44-3/4 hr at $ 8/hr,

         misc. expenses $ 400

    6/24-27/94 labor: yard work - 35 hr at $ 8/hr,

         misc. expenses $ 350

    7/7/94 labor: unloading furniture, etc. in

         Milton NH $ 20

    8/31/94 labor: storing furniture in Milton

           1999 Tax Ct. Memo LEXIS 452">*466 NH $ 20

 14   Christopher's Quince Orchard Hardware,

    Gaithersburg MD - various miscellaneous

    supplies for lawn, garden & landscaping;

    painting; tile repair & grouting; window

    repairs; flagstone & concrete cleaning and

    finishing; plumbing repair; nails, screws &

    other misc. hardware                    617

    5/04/94 - $  13.11  7/01/94 - $  4.18   9/10/94 - $  8.49

    5/16/94 - $  10.69  7/09/94 - $ 10.67   9/13/94 - $  9.01

    6/01/94 - $  14.60  7/12/94 - $  3.04   9/14/94 - $  9.75

    6/18/94 - $ 108.66  7/15/94 - $  3.46   9/15/94 - $  2.72

    6/19/94 - $ 103.90  7/16/94 - $  6.07   9/30/94 - $ 24.19

    6/19/94 - $  19.82  7/16/94 - $  6.49  10/01/94 - $ 10.38

    6/20/94 - $  46.18  7/24/94 - $  3.48  10/01/94 - $  4.19

    6/25/94 - $   9.76  7/30/94 - $  9.97  10/08/94 - $  3.77

    6/25/94 - $   2.09  8/01/94 - $  7.56  10/09/94 - $  8.39

    6/25/94 - $  11.54  8/12/94 - $ 19.40  10/14/94 - $ 13.82

    6/25/94 - $  32.72  9/04/94 - $ 46.18  10/16/94 - $  8.39

    6/29/94 - $   5.01  9/04/94 - $  0.48   9/30/94 - $  8.39

              9/09/94 - $  6.07

 15   Color Tile, Gaithersburg MD                 15

       7/6/94 grout saw - $ 10.49

       8/23/94 additional blades 1999 Tax Ct. Memo LEXIS 452">*467 $ 4.19

 16   CPI Photo, Lake Forest Mall, Gaithersburg          54

       MD

    11/9/94 duplicates & enlargements of

         property-$ 54.39

 17   Crown Gasoline, Quince Orchard,                5

       Gaithersburg MD

    5/26/94 gas for mowing - $ 5.00

 18   CVS Pharmacy, Quince Orchard, Gaithersburg         $ 18

       MD

    8/9/94 floor protectors, shelf paper -

          $ 10.45

    8/11/94 floor protectors - $ 4.18

    10/9/94 floor protectors - $ 3.55

 19   Darnestown Office Products, Quince Orchard,          2

    Gaithersburg MD  10/8/94 tape - $ 1.88

 20   Darnestown Texaco, Darnestown MD               13

    6/12/94 gas for mowing & trimming - $ 6.34

    9/2/94   "   "    "   - $ 7.00

 21   Fisher Lumber (Leland L. Fisher, INC.),           12

       Rockville MD

     7/11/94 grouting supplies - $ 11.81

 22   Gaithersburg Ford-Kubota Tractor Co.,             9

      Gaithersburg MD

    9/10/94 repair parts for mower - $ 5.04

    9/20/94   "    "    "   "   - $ 4.19

 23   Gaithersburg Paint Center, Gaithersburg MD          31

    5/22/94 exterior window & trim paint &

           supplies-$ 31.40

 24   Ron Gilk, Germantown MD                   336

    6/9/94 seal driveway - $ 336.00

 25   P. Walker Grant, 1999 Tax Ct. Memo LEXIS 452">*468 Jr. reimbursement for ex-         347

    penses of moving personal property and furniture

    to heirs' homes in rented truck

    7/6-8/94 gas $ 141.25, tolls $ 15.10,

           motel $ 31.80

    9/5-7/94 gas $ 140.87, tolls $ 17.80

 26   Griffith-Steuart/Steuart Fuels (Div. of           590

    Griffith Consumers), Baltimore MD - heating

         oil

    3/28/94 $ 229.70   11/29/94  $  76.86

    9/20/94 $ 101.53   12/21/94 $ 133.64

    11/7/94  $  48.36

 27   Hechinger, Rockville & Gaithersburg MD          $ 120

    5/21/94 paint supplies - $ 1.46

    6/26/94 carpentry supplies - $ 4.43

    8/4/94 garden rake - $ 10.49

    8/10/94 flagstone sealer - $ 17.09

    8/15/94    "     "   - $ 17.09

    10/12/94 grass seed - $ 23.08

    10/14/94   "   "  - $ 46.16

 28   Home Depot, Gaithersburg MD                377

    5/15/94 painting supplies, primer - $ 28.74

    5/31/94 driveway sealer - $ 29.67

    6/5/94 paint & carpentry supplies - $ 43.63

    6/26/94 carpentry material - $ 13.89

    7/11/94 electrical devices & trim, door &

           window hardware - $ 206.07

    7/23/94 trim & hardware items - $ 24.47

    8/30/94 marble cleaning & finish supplies - $ 20.76

    9/2/94   "  "  "  "   - $ 9.81

 29   Lizz Huntzberry, 1999 Tax Ct. Memo LEXIS 452">*469 Chewsville Rd., Smithburg         355

          MD

    5/31/94 lawn mowing & trimming - $ 195.00

    8/8/94   "   "   "   "    - $ 160.00

 30   Johnson's Flower & Garden Center, Quince          72

       Orchard, Gaithersburg MD

    7/30/94 plants & fertilizer

 31   K-Mart, Kentlands Square, Gaithersburg MD          35

    8/9/94 Perlite soil additive - $ 4.77

    9/7/94 bath mats - $ 26.23

    9/19/94 vacuum cleaner bags - $ 4.19

 32   Kinko's, Gaithersburg MD                   2

    10/12/94 copies of property plat - $ 1.84

 33   King & Sons, Burtonville MD                170

    6/3/94 pump & inspect septic tank -

         $ 170.00

 34   Lighting Designers, Rockville MD              143

    5/18/94 replacement front door & kitchen

    light fixtures - $ 142.59

 35   Lowe's, Kentlands Square, Gaithersburg MD        $ 203

       supplies for garden, masonry, plumbing,

       painting

    6/11/94 - $  4.28  8/07/94 - $ 33.14   9/14/94 - $ 12.80

    8/03/94 - $  7.56  8/09/94 - $ 12.42   9/15/94 - $ 10.74

    8/4/94  - $  3.19  8/13/94 - $  6.19   9/17/94 - $ 18.51

    8/6/94  - $ 45.72  9/09/94 - $  4.27  10/14/94 - $ 31.23

    8/6/94  - $  5.11  9/13/94 - $  7.85

 36   South 1999 Tax Ct. Memo LEXIS 452">*470 T. Lynn, 13701 Deakins Lane             200

    Germantown MD 20874

    5/31/94 Deakins Lane roadway maintenance - $ 100.00

    11/22/94   "    "    "    "     -

                         $ 100.00

 37   Meadows Farms, Germantown MD                272

    9/3/94 topsoil - $ 271.92

 38   Montgomery County, MD, Rockville MD           5,746

    4/22/94 additional death certificates - $ 72.00

    9/15/94 property taxes - $ 5,673.69

 39   Original Custom Interiors, Herald Harbor MD         60

    8/8/94 drapery alteration - $ 60.00

 40   Penn Auto, Gaithersburg MD                  7

    5/24/94 fuses for mowing tractor - $ 1.57

    8/1/94 oil filler cap for tractor - $ 5.24

 41   J C Penney, Lake Forest Mall, Gaithersburg         36

    MD

    9/18/94 drapes and hardware - $ 36.23

 42   Pepco (Potomac Electric Power Co.),           1,571

       Washington DC

    2/23/94-3/25/94 $  76.72   7/22/94-8/22/94 $ 224.68

    3/25/94-4/21/94 $  63.20   8/22/94-9/20/94 $ 164.97

    4/21/94-5/19/94 $  69.26   9/20/94-10/21/94 $ 112.34

    5/19/94-6/21/94 $ 356.24  10/21/94-11/18/94 $  52.36

    6/21/94-7/22/94 $ 451.52

 43   Plumbing World, Gaithersburg MD               5

    9/9/94 plumbing repair materials - $ 5.46

 44   Polyzo's 1999 Tax Ct. Memo LEXIS 452">*471 Painting Inc., Silver Spring MD        $ 4,750

    7/15/94 interior & exterior painting -

                      $ 4,000.00

    7/26/94   "    "   "     "       -

                       $ 750.00

 45   Potomac Nursery, Potomac MD                196

    9/4/94 plants - $ 180.74

    9/13/94 grass seed - $ 15.74

 46   Potomac Valley Bank, branch at Potomac MD          45

    4/11/94 safe deposit box rental - $ 45.00

 47   Pro-Graf 1-HR Photo, Gaithersburg MD            58

    11/10/94 property photos developing &

         printing-

                      $ 24.07

    11/19/94   "   "   "   "         -

                      $ 33.52

 48   Rent-A-Wreck, Rockville MD                 619

    7/8/94 truck rental, move effects to NH &

                       VT-

                      $ 318.33

    9/7/94  "   "   "   "   "   "     -

                      $ 300.93

 49   Safeway, Quince Orchard, Gaithersburg MD          32

    7/4/94 packing materials - $ 13.61

    8/10/94 plants - $ 6.28

    11/5/94 light bulbs - $ 12.14

 50   Sears, Roebuck & Co., Lake Forest Mall,           42

    Gaithersburg MD

    7/28/94 drapery traverse rod - $ 41.99

 51   Southern States Co-op Inc., Gaithersburg MD         4

    11/25/94 fence repair material 1999 Tax Ct. Memo LEXIS 452">*472 - $ 3.67

 52   Staples, Rockville MD                    4

    10/9/94 masking tape - $ 4.47

 53   Strosniders Hardware, Potomac MD             $ 108

    6/11/94 window & sash cleaning materials -

          $ 65.08

    6/12/94 broken window repair materials -

          $ 36.04

    6/13/94 grass trimmer line - $ 7.33

 54   Timberidge Farm, Mt. Airy MD                 5

    11/25/94 fence repair lumber - $ 5.00

 55   Universal Floors Inc., Gaithersburg MD          3,505

    7/26/94 refinish hardwood floors -

                      $ 1,405.00

    8/3/94   "      "     "      -

                      $ 2,100.00

 56   USPS                            46

    4/8, 5/5 & 9/2/94 stamps - $ 40.60

    5/28/94 postage - $ 2.75

    10/7 & 10/19/94 postage - $ 1.73

    11/10/94 postage

 57   several local high school kids, full names         142

    & addresses unknown, for misc. labor

    8/13/94 move furniture-2 for 3 hrs at

         $ 7/hr-$ 42.00

    9/4/94 yard work, windows-2 for day at $ 50-

          $ 100.00

 58   P. Walker Grant, Jr. - reimbursement for

    local mileage incurred in settling estate

    2101 mi at $ 0.29/mi  PAID                 609

 59   Kathryn Lynn Grant Adams - reimbursement

    for local mileage incurred 1999 Tax Ct. Memo LEXIS 452">*473 in settling estate

    704 mi at $ 0.29/mi  PAID                  204

 60   Move trailer of furniture to temporary

    storage in Milton NH after sale of house -

    540 miles, estimate quoted at $ 2/mi  ESTIMATED      1,080

After decedent's death, the Trust filed its initial Form 1041, U.S. Income Tax Return for Estates and Trusts (Trust income tax return), for the period April 2, 1994 (the date of decedent's death) through December 31, 1994. The Trust income tax return showed, inter alia, in Schedule B ("Income Distribution Deduction") distributable net income totaling $ 3,086, which consisted of $ 3,006 of adjusted total income and $ 80 of adjusted tax-exempt interest, and "Other amounts paid, credited, or otherwise required to be distributed" of $ 314,968.

In December 1996, approximately two years and eight months after decedent's death, decedent's residence was sold for approximately 1999 Tax Ct. Memo LEXIS 452">*474 $ 440,000.

Respondent issued a notice of deficiency (notice) with respect to decedent's estate. In the notice, respondent disal- lowed executors' fees of $ 16,875 and other expenses totaling $ 29,502, and allowed accountant's fees of $ 840 and appraisal fees totaling $ 885, that were claimed in Schedule L. In addition, respondent allowed as Schedule L expenses $ 2,203 of trustees' fees that were not claimed in Schedule L and $ 1,865 of attorney's fees that were claimed in Schedule J of the estate tax return.

OPINION

The estate bears the burden of demonstrating error in respondent's determinations and in establishing its entitlement to deduct under section 2053 the expenses claimed. See Rule 142(a); Welch v. Helvering, 290 U.S. 111">290 U.S. 111, 290 U.S. 111">115, 78 L. Ed. 212">78 L. Ed. 212, 54 S. Ct. 8">54 S. Ct. 8 (1933).

The estate contends that it is entitled to deduct under section 2053(b) administration expenses consisting of executors' fees totaling $ 16,875 and miscellaneous administration expenses totaling $ 23,828. ^{51999 Tax Ct. Memo LEXIS 452">*475} Respondent disagrees.

In determining the taxable estate, section 2053(b) allows deductions of amounts representing expenses incurred in administering property not subject to claims which is included in the gross estate, to the same extent such expenses would be allowable as deductions under section 2053(a) if such property were subject to claims, and such amounts are paid before the expiration of the period of limitation for assessment provided in section 6501. Section 20.2053-8, Estate Tax Regs., provides in pertinent part with respect to the deductibility of expenses in administering property not subject to claims:

   Usually, these expenses are incurred in connection with

   the administration of a trust established by a decedent

   during his lifetime. * * *

     (b) These expenses may be allowed as deductions

   only to the extent that they would be allowed as deductions

   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 section 20.2053-3. The

   only expenses in administering property not subject to

   claims which are allowed as deductions are those occasioned by

   the decedent's 1999 Tax Ct. Memo LEXIS 452">*476 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 section 20.2053-3 (relating to the allowance

   of executor's commissions, attorney's fees, and miscellaneous

   administration expenses of the first category [of deductions set

   forth in section 20.2053-1(a)(1), Estate Tax Regs.]) are applied

   in determining the extent to which trustee's commissions,

   attorney's and accountant's fees, and miscellaneous

   administration expenses are allowed in connection with the

   administration of property not subject to claims.

The only dispute between the parties under section 2053(b) is whether the administration expenses claimed as deductions would be allowable as deductions under section 2053(a)(2). Section 2053(a)(2), relating to expenses incurred in administering property included in the gross estate and subject to claims, allows a deduction from the value of the gross estate of "such amounts * * * for administration 1999 Tax Ct. Memo LEXIS 452">*477 expenses * * * as are allowable by the laws of the jurisdiction * * * under which the estate is being administered." Section 20.2053-3(a), Estate Tax Regs., provides that amounts deductible as

   "administration expenses" of the first category * * *

   [under section 2053(a)(2)] 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 assets,

   payment of debts, and distribution of property to 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. Administration expenses include (1) executor's

   commissions; (2) attorney's fees; and (3) miscellaneous

   expenses. * * *

We turn first to the executors' fees totaling $ 16,875 which the estate contends are allowable as deductions under section 2053(a)(2) and therefore are deductible under section 2053(b). The executors' fees consisted of $ 11,250 paid to Mr. Grant and $ 5,625 paid to Ms. Adams which were claimed in Schedule L. In the notice, respondent disallowed those claimed executors' fees 1999 Tax Ct. Memo LEXIS 452">*478 but allowed deductions under section 2053(b) for $ 2,203 of trustees' fees that were not claimed in Schedule L. On brief, respondent concedes that, in addition to the $ 2,203 of trustees' fees allowed in the notice, the estate is entitled to deduct under section 2053(b) trustees' fees of $ 3,517 and executors' fees of $ 990. Thus, respondent concedes that the estate is entitled to deduct under section 2053 a total of $ 6,710 of executors' fees and trustees' fees. Consequently, the amount of executors' fees claimed by the estate that remains in dispute is $ 10,165.

Section 20.2053-3(b), Estate Tax Regs., entitled "Executor's commissions", provides in pertinent part:

   The executor * * * may deduct his commissions in such

   an amount as has actually been paid * * *. If the

   amount of the commissions has not been fixed by decree

   of the proper court, the deduction will be allowed

   * * * to the extent that all three of the following

   conditions are satisfied:

     (i) The district director is reasonably satisfied

   that the commissions claimed will be paid;

     (ii) The amount claimed as a deduction is within

   the amount allowable by the laws of the jurisdiction in

   which the estate 1999 Tax Ct. Memo LEXIS 452">*479 is being administered; and

     (iii) It is in accordance with the usually accepted

   practice in the jurisdiction to allow such an amount in estates

   of similar size and character.

In support of its position that it is entitled to deduct under section 2053(b) executors' fees totaling $ 16,875, the estate relies in part on Md. Code Ann., Est. & Trusts, sec. 7-601(b) (1998 Supp.) (Md. Code Ann., Est. & Trusts, sec. 7-601(b)). That section prescribes the maximum compensation payable to a personal representative of an estate as follows:

     (b) Computation of compensation. -- Unless the will

   provides a larger measure of compensation, upon petition filed

   in reasonable detail by the personal representative * * * the

   court may allow the commissions it considers appropriate. The

   commissions may not exceed those computed in accordance with the

   table in this subsection.

   If the property subject to      The commission may

    administration is:          not exceed:

   Not over $ 20,000                   9%

   Over $ 20,000          $ 1,800 plus 3.6% of the

                    excess over $ 20,000

According to the estate, the maximum compensation, determined pursuant to Md. Code Ann., Est. & Trusts, sec. 7-601(b), 1999 Tax Ct. Memo LEXIS 452">*480 of Mr. Grant and Ms. Adams, the personal representatives of decedent's estate, was $ 32,237. ⁶ The estate calculated that amount as follows:

   9% x $ 20,000     = $ 1,800

   3.6% x $ 845,480 ^{71999 Tax Ct. Memo LEXIS 452">*481} = 30,437

       Total     32,237

The estate reasons that, because it claimed only $ 16,875 as executors' fees for its personal representatives, and not the maximum compensation of $ 32,237 that it believes it could have claimed under Md. Code Ann., Est. & Trusts, sec. 7-601(b), the full amount of such compensation claimed in Schedule L of the estate tax return, i.e., $ 16,875, is reasonable and allowable by Maryland law. According to the estate, "Meeting the tests for allowability by local law, it [the amount of executors' fees claimed by the estate] is also allowable by federal law."

We reject the estate's position that the personal representatives of decedent's estate would have been entitled to maximum compensation under Md. Code Ann., Est. & Trusts, sec. 7- 601(b) in the amount of $ 32,237. The maximum compensation of the personal representative of an estate prescribed by that section is designed to compensate such representative for all of the ordinary work of administering an estate subject to administration, see Lehman v. Kairys, 217 Md. 359">217 Md. 359, 217 Md. 359">364, 142 A.2d 546">142 A.2d 546, 142 A.2d 546">548 (1958); Talbert v. Reeves, 211 Md. 275">211 Md. 275, 211 Md. 275">283, 127 A.2d 533">127 A.2d 533, 127 A.2d 533">538 (1956), 1999 Tax Ct. Memo LEXIS 452">*482 and is determined by reference to the amount of property subject to administration. The value of decedent's property as of the date of her death that was subject to administration was no more than $ 11,253.⁸ Thus, the maximum compensation of the estate's personal representatives under Md. Code Ann., Est. & Trusts, sec. 7-601(b) would have been $ 1,012.77 ($ 11,253 x 9%), and not $ 32,237 as claimed by the estate. ^{91999 Tax Ct. Memo LEXIS 452">*483}

We also reject the estate's position that "Meeting the tests for allowability by local law, it [the amount of executors' fees claimed by the estate] is also allowable by federal law." In determining the deductibility of administration expenses under section 2053(a)(2), the deductions claimed must be allowable not only by the State law under which the estate is administered but also 1999 Tax Ct. Memo LEXIS 452">*484 by Federal law. See Estate of Love v. Commissioner, 923 F.2d 335">923 F.2d 335, 923 F.2d 335">337 (4th Cir. 1991), affg. T.C. Memo. 1989-470; Estate of Smith v. Commissioner, 510 F.2d 479">510 F.2d 479, 510 F.2d 479">482-483 (2d Cir. 1975), affg. 57 T.C. 650">57 T.C. 650 (1972); Estate of Posen v. Commissioner, 75 T.C. 355">75 T.C. 355, 75 T.C. 355">367 (1980). To satisfy Federal law, the deductions claimed as administration expenses must satisfy the requirements of section 2053 and the regulations thereunder.

The estate contends that none of the time spent by Mr. Grant and Ms. Adams, which was used to determine the amount of executors' fees claimed in Schedule L, was for management of the Trust and that all of that time was spent to settle the estate. On the record before us, we disagree. Nothing in the record supports that contention. To the contrary, the record shows that the value of decedent's nonprobate property, as reported in Schedule G of the estate tax return, was $ 865,480, whereas the value of the non-Trust property was only $ 11,253. The record also establishes that virtually all of the miscellaneous administration expenses were incurred with respect to decedent's nonprobate property. Based on the record presented, we believe that most of the time spent by Mr. 1999 Tax Ct. Memo LEXIS 452">*485 Grant and Ms. Adams must have related to that nonprobate property.

On the record before us, we find that the estate has failed to show that it is entitled to deduct as executors' fees under Md. Code Ann., Est. & Trusts, sec. 7-601(b) an amount greater than $ 1,012.77. ^{101999 Tax Ct. Memo LEXIS 452">*486 1999 Tax Ct. Memo LEXIS 452">*487}

The estate argues that, assuming arguendo that some of the time spent by Mr. Grant and Ms. Adams were considered to have been spent by them as successor trustees of the Trust, the estate would be entitled under section 2053(b) to deduct trustees' fees allowable under Md. Code Ann., Est. & Trusts, sec. 14-103(c) and (e) (1991) (Md. Code Ann., Est. & Trusts, sec. 14-103(c) and (e)) in the amounts of $ 1,388 and $ 4,327, respectively. ¹¹ Those provisions of Maryland law, which relate to the calculation of commissions for trustees, provide in pertinent part:

     (c) Corpus commissions. -- Accounting from July 1,

   1981, whether or not the trust was in existence at that

   time, commissions are payable at the end of each year

   upon the fair value of the corpus or principal held in

   trust at the end of each year as follows:

     (1) Four tenths of one percent on the first

  $ 250,000;

     (2) One fourth of one percent on the next

  $ 250,000;

     (3) Three twentieths of one percent on the next

  $ 1999 Tax Ct. Memo LEXIS 452">*488 500,000; and

     (4) One tenth of one percent upon any excess.

   * * *

     * * * * * * *

     (e) Final distribution. -- Upon the final distribution of

   any trust estate, or portion of it, an allowance is payable

   commensurate with the labor and responsibility involved in

   making the distribution, including the making of any division,

   the ascertainment of the parties entitled, the ascertainment and

   payment of taxes, and any necessary transfer of assets. The

   allowance is subject to revision or determination by any circuit

   court having jurisdiction. In the absence of special

   circumstances the allowance shall be equal to one half of one

   percent upon the fair value of the corpus distributed. [Md.

   Code Ann., Est. & Trusts, sec. 14-103(c), (e).]

Respondent 1999 Tax Ct. Memo LEXIS 452">*489 concedes that the estate is entitled under section 2053(b) to deduct trustees' commissions in the respective amounts of $ 1,388 and $ 4,332 determined under Md. Code Ann., Est. & Trusts, sec. 14-103(c) and (e), or total trustees' commissions of $ 5,720 which includes the $ 2,203 of trustees' fees allowed by respondent in the notice. On the record before us, we find that the estate has failed to show that it is entitled under section 2053(b) to deduct trustees' commissions or fees determined under Md. Code Ann., Est. & Trusts, sec. 14-103(c) and (e) in excess of that total amount (i.e., the total of $ 1,388 and $ 4,332 ^{121999 Tax Ct. Memo LEXIS 452">*490} under those respective provisions of Maryland law).

We turn now to the $ 23,828 of miscellaneous administration expenses that the estate claimed in Schedule L and that remain in dispute. ¹³ Those expenses may be broken down into the following broad categories of expenses, which were claimed for the purposes alleged in Schedule L and enumerated in that schedule as the following items of expense: (1) Items 4 and 5: travel expenses of Mr. Grant and Ms. Adams for round trips from Vermont and New Hampshire, respectively, to Maryland "to settle estate"; (2) item 6: travel expenses of Geoffrey C. Adams "with helper," for round trips from New Hampshire to Maryland, "both to work on house"; (3) items 58 and 59: reimbursements at 29 cents per mile to Mr. Grant "for local mileage [2,101 miles]" and to Ms. Adams "for local mileage [704 miles]", "incurred in settling estate"; (4) items 10, 1999 Tax Ct. Memo LEXIS 452">*491 26, and 42: telephone bills with closing dates from April 8, 1994, through December 8, 1994; home heating fuel bills with closing dates from March 28, 1994, through December 21, 1994; and electric bills with closing dates from February 23, 1994, through November 18, 1994; ¹⁴ (5) items 8, 9, 11 through 15, 17 through 24, 27 through 31, 33 through 37, 39 through 41, 43 through 45, 49 through 55, and 57: various expenses incurred with respect to work done to decedent's residence and/or the effects therein, including replacing glass top table; siding; shutters; replacing oven switch; yard work; window cleaning; trash hauling; miscellaneous supplies for lawn, garden, and landscaping; tile repair and grouting; window repairs; flagstone and concrete cleaning and finishing; plumbing repairs; floor protectors; painting exterior windows and trim; sealing driveway; carpentry work; electrical work; lawn mowing; plants and fertilizer; replacing front door and kitchen light fixtures; supplies for garden; masonry; plumbing; roadway maintenance; top soil; drapery alteration; interior and exterior painting; plants and grass seed; drapery traverse rod; window and sash cleaning materials; and refinishing 1999 Tax Ct. Memo LEXIS 452">*492 hardwood floors; (6) items 13, 25, 48, 49, 57, and 60: various expenses for moving furniture and other household effects and personal property of decedent from Maryland to New Hampshire and temporary storage of furniture in New Hampshire after the sale of decedent's residence in December 1996; and (7) items 7, 16, 31, 32, 38, 46, 47, and 56: various miscellaneous expenses, including expenses for "Excess liability policy premium", "duplicates & enlargements of property"; bath mats and vacuum cleaner bags; copies of property plat; additional death certificates; safe deposit rental; developing and printing property photos; and postage.

It is significant that, except for the descriptions of the $ 23,828 of miscellaneous administration expenses at issue which are set forth in Schedule L of the estate tax return, the record is devoid of any evidence elaborating on those claimed expenses. In the briefs that the estate filed in this case, the estate makes various factual allegations about those expenses. Many 1999 Tax Ct. Memo LEXIS 452">*493 of those allegations are not supported by the record in this case and consequently have been disregarded by the Court. See Rule 143(b).

Section 20.2053-3(d), Estate Tax Regs., relating to deductions for miscellaneous administration expenses, provides in pertinent part:

     (d) Miscellaneous administration expenses.

   (1) Miscellaneous administration expenses include such

   expenses as court costs, surrogates' fees, accountants'

   fees, appraisers' fees, clerk hire, etc. Expenses

   necessarily incurred in preserving and distributing the

   estate are deductible, including the cost of storing or

   maintaining property of the estate, if it is impossible

   to effect immediate distribution to the beneficiaries.

   Expenses for preserving and caring for the property may

   not include outlays for additions or improvements; nor

   will such expenses be allowed for a longer period than

   the executor is reasonably required to retain the

   property.

     (2) Expenses for selling property of the estate

   are deductible if the sale is necessary in order to pay

   the decedent's debts, expenses of administration, or

   taxes, to preserve the estate, or to effect distribution. The

   phrase "expenses for 1999 Tax Ct. Memo LEXIS 452">*494 selling property" includes brokerage fees

   and other expenses attending the sale, such as the fees of an

   auctioneer if it is reasonably necessary to employ one. * * *

On the record before us, we find that the estate has failed to establish that the expenses claimed in Schedule L for the travel of Mr. Grant and Ms. Adams from Vermont and New Hampshire, respectively, to Maryland were necessarily incurred in preserving and distributing the estate's assets. In this connection, the Attorney General of Maryland has determined upon at least two occasions that incidental expenses incurred by nonresident executors in the course of the ordinary business of administering an estate in Maryland, including long distance telephone calls, hotel expenses, and airplane tickets, will not be considered expenses necessary to protect the estate if incurred only because the executors are nonresidents. See 59 Op. Atty. Gen. 613 (Md. 1974); 48 Op. Atty. Gen. 419 (Md. 1963). ^{151999 Tax Ct. Memo LEXIS 452">*495}

On the record before us, we further find that the estate 1999 Tax Ct. Memo LEXIS 452">*496 has failed to establish that the expenses claimed in Schedule L to reimburse Mr. Grant and Ms. Adams for a total of 2,805 miles of "local mileage incurred in settling estate" were necessarily incurred in preserving and distributing the estate's assets. The record is devoid of any evidence explaining what Mr. Grant and Ms. Adams did when they traveled over 2,800 miles in Maryland.

The estate claims that virtually all of the other expenses at issue were incurred (1) "to maintain, or prevent some degradation in, the condition of" decedent's residence; (2) "for repairs to enhance the salability of" decedent's residence; and (3) "for selling" decedent's residence. ¹⁶ We address first the estate's contention that the sale of decedent's residence was necessary in order to pay taxes because "the cash in the estate * * * [was] insufficient" to do so and that therefore the expenses for the last two purposes claimed satisfy section 20.2053-3(d)(2), Estate Tax Regs. We disagree. While decedent's estate might not have had sufficient cash to pay taxes, it had more than enough cash and liquid cash type assets to pay such taxes. In this connection, the estate tax return reported as part of decedent's 1999 Tax Ct. Memo LEXIS 452">*497 gross estate, inter alia, five money market mutual funds with total funds of $ 121,603; a checking bank account with funds of $ 31,274; and a money market bank account with funds of $ 17,879. The estate tax return showed estate tax due of $ 60,118, claimed a credit for State death taxes of $ 23,911, and claimed $ 53,583 of deductions.

On the record before us, we find that the estate had sufficient cash and liquid cash type assets to pay not only taxes but also all of its debts and expenses without selling decedent's residence. We therefore reject the estate's position that the sale of decedent's residence satisfies section 20.2053-3(d)(2), Estate Tax Regs., because that sale was necessary to pay taxes. We further find on the instant record that the estate has failed to show that any of the expenses which it claims were incurred "for repairs to enhance the salability of" decedent's residence ^{171999 Tax Ct. Memo LEXIS 452">*498} and "for selling" that residence ¹⁸ are deductible under section 2053.

Nonetheless, we believe on the record presented that it was not possible to distribute all of decedent's property, including decedent's residence and the household and other personal effects located at that residence, immediately after decedent's death. Consequently, we find that certain expenses incurred in maintaining that residence, including certain utility expenses (i.e., telephone, home heating fuel, and electricity provided at decedent's residence ¹⁹), and in distributing those assets are deductible under section 2053 and the regulations thereunder. See sec. 20.2053-3(d)(1), Estate Tax Regs. In addition, on the record before us, we find that certain expenses incurred for additional death certificates, rental of a safe deposit box, postage, and insurance on decedent's residence are deductible 1999 Tax Ct. Memo LEXIS 452">*499 under those provisions.

Based on our examination of the entire record in this case, and bearing in mind that the estate has the burden of proving its entitlement under section 2053(b) to the miscellaneous administration expenses claimed, we find that 1999 Tax Ct. Memo LEXIS 452">*500 the estate is entitled to deduct $ 3,100 as administration expenses. ²⁰

To reflect the foregoing and the concessions of parties,

Decision will be entered under Rule 155.