Stanley Forman Reed

“ We think not. It says 'all bequests'-whatever the charity takes under the will. There is not a word that limits the deduction of bequests to what assuredly goes to the institution. It is the 'amount' of the bequest that is deductible-its presently ascertainable value. The statute plainly allows deferred charitable bequests. It does not require assured enjoyment.
Under the Court's interpretation, if a child were bequeathed his father's estate for life with remainder in default of issue to the recognized institutions, the full estate tax would have to be paid. ”

“ On the other hand, if the estate were left simply to the child for life and then to the same institutions, the estate would be free from the tax on the present value of the remainder. Such a differentiation is not found in the statute. The Congress said that charitable bequests should be deductible. The valuation of the charitable interest in one instance would be greater that in the other; the tax less. But in each case the net estate would be reduced only by the present actuarial value of the charitable bequest. ”

“ It was there said:↑ 'Conditional bequests.-Where the bequest, legacy, devise, or gift is dependent upon the performance of some act, or the happening of some event, in order to become effective it is necessary that the performance of the act or the occurrence of the event shall have taken place before the deduction can be allowed. Where, by the terms of the bequest, devise or gift, it is subject to be defeated by a subsequent act or event, no deduction will be allowed.' Treas.Reg. ”

“ Regulations do not have the safeguards of federal statutory enactments. Interested parties outside the Internal Revenue Service perhaps may not be heard. Reports explaining the action are not available. ”