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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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