Deduction of expenses and debts.

# (a)

The determination of the deductibility of funeral expenses and administration expenses against the estate under K.S.A. 79-1561 shall be made in accordance with Treasury Reg. Sec.
20.2053-1 (1972), Treasury Reg. Sec. 20.2053-2
(1958) and Treasury Reg. Sec. 20.2053-3 (1979), which are hereby adopted by reference.

# (b)

Any claim or debt against a decedent’s estate which accrued prior to the death of the decedent shall be deductible from the gross estate for inheritance tax purposes when allowed by the district court in probated estates. In the case of a non-

probated estate, the director of taxation may examine and disallow any claims which are not legal and legitimate obligations of the estate. The determination of what claims and debts are allowable shall be made in accordance with the general principles set forth in Treasury Reg. Sec. 20.2053-4 through
Sec. 20.2053-6 (1958), Treasury Reg. Sec. 20. 2053-7 (1963) and Treasury Reg. Sec. 20.2053-8 (1958), which are hereby adopted by reference.

# (c)

The total amount of claims and debts allowable under subsection (b) shall be deducted from the adjusted gross estate in computing the amount of the distributable estate. Unless otherwise provided by the decedent’s will, the portion of each distributee’s share which is considered to be offset by claims and debts, and therefore not subject to inheritance tax, shall be dependent upon the type of conveyance by which the distributees receive their shares. For inheritance tax purposes, conveyances shall be offset by claims and debts in the order specified by K.S.A. 59-1405, and its amendments. (Authorized by K.S.A. 79-1583; implementing K.S.A. 79-1561; effective May 1, 1986.)