§674. Power to control beneficial enjoyment — Inbound Citations

Citations to 26 U.S.C. § 674 as a whole

• 26 U.S.C. § 672(c)

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  (c) For purposes of this subpart, the term “related or subordinate party” means any nonadverse party who is—

  (1) the grantor’s spouse if living with the grantor;

  (2) any one of the following: The grantor’s father, mother, issue, brother or sister; an employee of the grantor; a corporation or any employee of a corporation in which the stock holdings of the grantor and the trust are significant from the viewpoint of voting control; a subordinate employee of a corporation in which the grantor is an executive.

  For purposes of subsection (f) and sections 674 and 675, a related or subordinate party shall be presumed to be subservient to the grantor in respect of the exercise or nonexercise of the powers conferred on him unless such party is shown not to be subservient by a preponderance of the evidence.
• 26 U.S.C. § 677(a)

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  (a) The grantor shall be treated as the owner of any portion of a trust, whether or not he is treated as such owner under section 674, whose income without the approval or consent of any adverse party is, or, in the discretion of the grantor or a nonadverse party, or both, may be—

  (1) distributed to the grantor or the grantor’s spouse;

  (2) held or accumulated for future distribution to the grantor or the grantor’s spouse; or

  (3) applied to the payment of premiums on policies of insurance on the life of the grantor or the grantor’s spouse (except policies of insurance irrevocably payable for a purpose specified in section 170(c) (relating to definition of charitable contributions)).

  This subsection shall not apply to a power the exercise of which can only affect the beneficial enjoyment of the income for a period commencing after the occurrence of an event such that the grantor would not be treated as the owner under section 673 if the power were a reversionary interest; but the grantor may be treated as the owner after the occurrence of the event unless the power is relinquished.