Continental Illinois National Bank and Trust Company of Chicago v. The United States

COWEN, Chief Judge.

Richard Wasserman, the testator, an American citizen at the time of his death, bequeathed the residue of his estate to “the Mayor & Magistratsraete of Fuerth, Bayern, Germany 13a, to be used and expended for the benefit of said city of Fuerth.” Fuerth’s City Council1 has used the money thus far for construction of an old peoples’ home for the city’s inhabitants, and has earmarked any additional funds for operating and maintaining the home.

The Internal Revenue Service included the amount of the bequest, about $341,-000, in the testator’s gross estate. Plaintiff, as executor,…