In re the Accounting of Breen

The question is whether, on the death of an incompetent veteran domiciled in New York who dies intestate and without heirs, the State of New York is entitled to an estate tax where all the assets of the decedent’s estate were derived from benefits paid by the Veterans’ Administration. The answer turns on the proper interpretation to be placed on subdivision (e) of section 3202 of title 38 of the United States Code which provides: "(e) Any funds in the hands of a guardian, curator, conservator, or person legally vested with the care of the beneficiary or his estate, derived from benefits…