Ernest and Mary Hayward Weir Foundation v. United States

Appellant, a .tax-exempt charitable corporation, is the successor in interest to a private, non-eharitable testamentary trust established at the death of Ernest Weir in 1957. Under the provisions of the will, the income of the trust was to go to his widow, Mrs. Mary Hayward Weir, for life and then “to such person or persons, including her estate, as she may, by her last will and testament, nominate and appoint.” Just prior to the death of Mrs. Weir in 1968, the trust realized capital gains of some $541,738.82 and subsequently paid taxes which are the subject of this lawsuit. In her will, Mrs.…