Client's parents, now both deceased, received an itemized deduction for a Theft Loss more than 10 years ago while they were both still living.  The children received a court settlement for repayment of the loss for the mother's claim, and will receive additional repayment for the father's claim in the future.  Is the repayment considered taxable to the Estate/Heirs?  And, if so, is it only to the extent of the amount originally itemized, or is it the amount of tax benefit received at the time?  Thank you in advance for your kind responses.