Thanks for the sympathy; I appreciate it. Just had to vent. I'm just waiting for Mom to get ready so that we can get HGI to fix the mess they made with the IRS. Apparently there are others who have done succession and are being over taxed for money not received so I'm gonna throw out what I've learned so far...
1. The IRS has no idea what to do. It only took an hour on the phone to learn they don't know, but the experience did have the benefit of really giving someone from the IRS a headache

.
2. My CPA isn't sure about the usfruct thing and so to be on the safe side we should pay the taxes once HGI corrects the amount of money received. She is not sure about the usufruct thing. Bless her heart, we were only on the phone for 20 min., and she knew what she was talking about. Well, except for the usufruct thing.
3. According to the lawyer who did the succession the Louisiana Civil Code Article 616 provides that the usufruct gains all proceeds from the sale and so the LRH money should not have been credited to the children, (aka. naked owners), at all. This guy actually had me loving lawyers this morning. He looked up the code for me and sent it in an e-mail. Bless his little lawyer heart.
Just some FYI for anyone else in my shoes.