Estate of Avrom A. Silver, Deceased, Bonny Fern Silver, Kenneth Kirsh, and Ronald Faust, Executors - Page 5

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          deduction is limited to “transfers to corporations and                      
          associations created or organized in the United States, and to              
          trustees for use within the United States”.  Sec. 20.2106-                  
          1(a)(2)(i), Estate Tax Regs.; see sec. 2106(a)(2)(A)(ii).  This             
          deduction may not exceed the value of the transferred property              
          required to be included in the gross estate.  Sec. 2106(a)(2)(D).           
          Decedent did not make a bequest to a corporation or association             
          created or organized in the United States; decedent made all                
          relevant bequests to Canadian-registered organizations described            
          in paragraph 1 of article XXI of the convention.4  We conclude              

               3(...continued)                                                        
               citizen of the United States shall be determined by                    
               deducting from the value of that part of his gross                     
               estate which at the time of his death is situated in                   
               the United States--                                                    
                              *   *   *   *   *   *   *                               
                         (2)  Transfers for public, charitable, and                   
                    religious uses.--                                                 
                              (A)  In general.- The amount of all                     
                         bequests, legacies, devises, or transfers                    
                         * * *                                                        
                              *   *   *   *   *   *   *                               
                                   (ii) to or for the use of any                      
                              domestic corporation organized and                      
                              operated exclusively for religious,                     
                              charitable, scientific, literary, or                    
                              educational purposes, * * *.                            
               4  We note that the estate did not argue that the bequests,            
          although made to Canadian-registered organizations, were                    
          ultimately used in the United States.  Cf. Estate of McAllister             
                                                             (continued...)           





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