The decedent's estate contained her Ohio residence, a California condominium in which her brother lived and a state teachers' retirement account. The residuary of the decedent's left $50,000 to her brother that lived in the condominium with the balance of the residuary estate passing to charity. The estate received a distribution from the retirement account of $243,463 and set aside $219,580 of it “permanently” for charity by placing it in an unsegregated checking account. Under I.R.C. Sec. 642(c), an estate can claim a charitable deduction for an amount that is set aside for charity, but hasn't yet been paid if, under the terms of the governing instrument, the possibility that the amount set aside will not be devoted to the charitable purpose or use is so remote as to be negligible. Treas. Reg. Sec. 1.642(c)-2-(d). When the estate income tax Form 1041 was filed on July 17, 2008, the charitable gift had not been completed, but the estate claimed the charitable deduction on the estate's Form 1041. The IRS denied the deduction. The court noted that for the deduction to apply, the charitable distribution must come from the estate's gross income, must be made pursuant to the governing instrument, and must be set aside. The court determined that the charitable amount did come from gross income (pension distribution which is IRD) and was made according to the decedent's will. However, the decedent's brother refused to move out of the condominium and claimed that existence of a resulting trust. In state court litigation, the brother prevailed, but also caused the estate's funds to deplete sufficiently such that the charitable bequest was never paid. The court noted that the brother's legal claims were public at the time the 1041 was filed and he had refused a buy-out to move out of the condo and the charity had refused to trade the monetary bequest for a life estate/remainder arrangement in the condominium. Apparently, the CPA in Ohio knew none of this at the time the 1041 was filed. The estate claimed that the "unanticipated litigation costs" were unforeseeable but, based on the facts and circumstances at the time Form 1041 was filed, the court held that the "so remote as to be negligible" requirement was not satisfied and upheld the denial of the charitable deduction. The funds had not been permanently set aside. The charity ultimately did receive a bequest, although it was less than initially anticipated, and the estate did not get a charitable deduction. Estate of Belmont v. Comr., 144 T.C. No. 6 (2015).